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Home > Should I dump this mutual fund???? What is your opinion?

Should I dump this mutual fund???? What is your opinion?

August 3rd, 2011 at 05:39 pm

I've been reviewing my accounts and facing a dilemma right now. Should I get out of this fund?

TRowePrice Emerging Europe & Mediterranean TREMX

My average cost basis $9,559
Income and fluctuations $2,460
25% growth over 3.4 years, so about 7.5% per year
I was dollar cost averaging, so it is not exactly accurate, but I am taking a lower figure.

NOTE: The fund did slightly better than Lipper Emerging Markets Funds Average for the last 2 years

CONS: Morning star rating is only ONE star (not that I put a tonn of faith into those ratings, but if it is that bad that they only give one star…)

The fund is marked as HIGHEST POSSIBLE risk on the TRowePrices risk chart.

Though this fund has been around for 11 years.

Average Annual Total Returns:
Month End Quarter End
07/31/2011 06/30/2011
1 Year 20.90% 35.19%
3 Years -5.30% -8.71%
5 Years 2.64% 3.90%
10 Years 17.62% 16.74%
Since Inception 11.08% 11.14%

I had it for 3.4 years and have average total return of 7.5% per year (due to timing mostly, I was adding money to it when it was tanking during crisis and Greece issues times)

The fund is in my ROTH account and I held all shares over 90 days, so no fee or tax implications.

If I were to get out of it, what fund would I move the money to?

What would you do?

Posted in Uncategorized | 5 Comments »

5 Responses to “Should I dump this mutual fund???? What is your opinion?”

  1. LuckyRobin Says:
    August 3rd, 2011 at 06:15 pm 1312395307
    1312395307

    I think it would depend on how much of your total retirement is in that fund. If it's ten to thirty percent of your total I'd keep it. If it's your entire retirement, well, it would depend on how far you are away from retirement, how comfortable you are with risk, etc. High risk equals high reward, which you seem to have gotten, but it can also equal high losses which you've been lucky to avoid. Your gains have been pretty spectacular. Maybe you should ask over at the forums. They know this stuff pretty well.

  2. baselle Says:
    August 3rd, 2011 at 06:47 pm 1312397229
    1312397229

    Its at its highest possible risk/one star because of Greece, but also because of Italy and Portugal (emerging and Meditereanean), Ireland, and perhaps Iceland (emerging Europe). I would definitely go into Morningstar to see the fund's top 10 holdings so you can pin down where the risk is coming from and really assess what the risk means to you. Do you hate risk, or this particular risk? My thought is that you are comfortable with risk as long as its spread around a bit. I myself have a bit of money in a worldwide emerging market fund - if Greece goes down, Brazil and India probably will pick up the slack.

  3. Nika Says:
    August 3rd, 2011 at 07:13 pm 1312398801
    1312398801

    I thought of myself as an moderate to high risk investor but when I reviewed my holdings I discovered I am extremely agressive in relity. But I don't like loosing money, so I wonder about this one.

    All but one of my funds are rated high-highest risk.
    Only one is rated moderate to high.

    What a fund is rated, and its overall returns are one thing, but what individual returns are is another.

    The fund that seemed to be underperforming comparing to Lipper equivalent (New Era) made 18% for me due to timing (I only started investing into it 1 year ago). So I don't know what to do here also. On one hand, it underpreforming, on the other, it has been the best performer for me personally. Very conflicting emotions.

    I have a long horizon, about 23-24 years (when my baby should be finishing his undergrad degree. But once daycare costs hit investing will be a struggle.

  4. Nika Says:
    August 3rd, 2011 at 07:30 pm 1312399839
    1312399839

    When I looked at top holdings I recognize a lot of Russian commodity(gas, oil, metals) type companies and some financials. Now I remember what made me think I can chance it. I believe in commodities as a long term investment. Still, have to look more into it. But probably will keep it. Maybe move a 1-2k some place else.

    I am wondering about New Asia fund right now(though it is a bit heavy on financials...). To soothe my fears regarding US economy and the dollar I want to look at commodities and international (over 20+ year horizon commodities should do well).

    And I need to pick a fund to start baby's ESA too. I feel a sence of too much responsibility with investing for baby.

  5. Nika Says:
    August 4th, 2011 at 04:38 pm 1312475886
    1312475886

    I moved half of it into the "balanced" fund. Moderate risk, divident paying, and top holdings are companies that I like (like apple, google, amazon). This is my first moderate risk fund!

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