One of the most common mistakes investors make is bailing out on a good fund based on short-term underperformance. Then, the fund rebounds smartly, but the investor has moved on to a different fund. Yet, the mistake is understandable because deciding when to bail out is not easy. Nygren's four rules will help you in that task.
Nygren suggests evaluating a lagging fund on four key measurements. If it passes all four tests, you should hold on.
1. Long-Term Performance
2. Fund Family Performance
3. Personal Investment
4. Consistent Investment Philosophy
[url=http://news.morningstar.com/article/article.asp?id=167998]Read the complete article[url]
Nygren suggests evaluating a lagging fund on four key measurements. If it passes all four tests, you should hold on.
1. Long-Term Performance
2. Fund Family Performance
3. Personal Investment
4. Consistent Investment Philosophy
[url=http://news.morningstar.com/article/article.asp?id=167998]Read the complete article[url]
