Introduction to Fund Warning Signs

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A mutual fund will sometimes change for the worst. And there will be warning signs, too. We will cover them in this course.

What you will learn

  • Fund Warning Signs: Asset Growth
  • Fund Warning Signs: Manager Changes
  • Fund Warning Signs: Fund-Family Growth, Mergers, or Acquisitions
  • Keep Watch on Your Funds

What do you know?

Introduction to Fund Warning Signs

All good things must come to an end. We all know about the shelf-life of television shows, for example. Remember when Who Wants to Be a Millionaire? was the most exciting thing happening to American audiences?

Mutual funds can also lose their magic. We’d love to say that a good fund will always be good, but funds change. Performance slips. Managers leave. Strategies evolve. That’s why funds need to be monitored.

Here are some of the warning signs to watch out for. These aren’t sell signals per se: instead, think of these as signals that change may be on the way—the mutual fund equivalent of dwindling audiences, sour writing, and producer desperation.