When do you exit an underperforming Investment Fund?

04 April 2023

Question by anonymous

When do you exit an underperforming Investment Fund and move your money into a different one?


Answered by Boring Money

As quoted in our 'Money Clinic with Bestinvest' webinar:

If you invest in something that is underperforming by your standards, I think it's always important to review the reason why you purchased it in the first place and do those reasons still exist. Have you still got conviction in why you invested in them originally? Are the reasons why I invested in it still there? Or posing the question another way, if I had a blank sheet of paper today, would I invest in that fund today? You need to be honest with yourself, it's important to understand the reasons why you invest in something because then it's easier, not easy, but easier for you to then review. Is it time for me to exit? You can review if you think it's just market dynamics that are causing it to underperform at that particular time. Understanding the reasons why you buy it in the first place is important because then you can use those to assess. Is it still right and good for me?

This question was answered by Matthew Morgan Head of Coaching at Bestinvest

Answered by

Boring Money