Choose wisely. There is only one correct answer to each question.
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1.
Is it okay to sell a fund that you've lost money on?
Maybe. While buying on dips or holding on to break even are strategies that many investors employ, you don't have to, as long as you know that you'd never make such a volatile investment again. Learn from your mistakes.
2.
As your financial goals change throughout life, what should happen with your mutual funds?
They should probably change too. At the very least, it's a good idea to make sure that they can meet your financial goals.
3.
What is not a good reason to consider selling a fund?
It performs just as you expect. If a fund loses or gains more than it should, it may be taking on risks that you didn't think it took. It may therefore be an inappropriate investment for you.
4.
If your mutual fund is so volatile that it is giving you excessive stress, you can consider selling it.
True. Here, you might want to buy a fund that doesn't cause migraines or ulcers.
5.
If your fund is an underperformer, you should consider all but which of the following before selling it?
Check its one-year performance. You may want to give the fund more than one year before selling due to underperformance.
