facebookI bought into a mutual fund from an FA friend but am considering changing to my own passive ETF investing. Should I wait for a good time to sell it or cash out asap, because of the fees? - Seedly
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Anonymous

Asked on 16 Jul 2020

I bought into a mutual fund from an FA friend but am considering changing to my own passive ETF investing. Should I wait for a good time to sell it or cash out asap, because of the fees?

What would you all do? :))

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X

X_Y

Level 5. Genius

Answered on 16 Jul 2020

Depends on what mutual fund you are holding now and what ETF(s) you want to invest in. If one of the ETFs happens to be the benchmark that the mutual fund is paired with, and is outperforming it, why not keep it since the fund manager is doing a good job at the moment. As the mutual fund moves higher, just tightened your risk tolerance and cash out at a profit if things turn south.

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Question Poster

18 Jul 2020

But even though the fund may be outperfoming, i am afraid that in the long term i may be losing out in not investing in a lower cost alternative :/

Frankie Rappaport

Frankie Rappaport

18 Jul 2020

Yes, your gut feeling could be right, and you're not comfortable with it, outperformance of actively managed mutual funds/unit trusts is rare anyway. You could switch to an ETF alternative already now, and then you have already learnt an important lesson. To learn even more, keep the mutual fund in observation for 3 years after the switch to see what had happened performance-wise, if you not had sold.

Thank You!
Can you clarify
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Best decision ever (I guess) if you'd name the Mutual Fund on this thread (or you'd open a new question on this board) I could give you a quick analysis and mention ETF alternatives.

bye bye​​​

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Frankie Rappaport

Frankie Rappaport

20 Jul 2020

Discuss also with your FA 'friend'

Frankie Rappaport

Frankie Rappaport

20 Jul 2020

Always take a look to the ETF factsheets (pdf"s online always available), what to sort out in the factsheets is written here: https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

Thank You!
Can you clarify
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