Mutual Funds Not Behaving Well?

The question of what to do when a managed mutual fund is not behaving well has less to do with holding or selling on the merits of its management, but whether you should have anything to do with a managed fund.

I have always commented that indexed mutual funds or exchange traded funds (ETFs), are better alternatives. They usually outperform managed funds and are lower cost. The lower the cost, the more return the investor will get over the years.

This question also will come up when a managed mutual fund you may have gets merged into another. These mergers are usually done for either or both of two reasons. To get economy of scale. Or to hide losing records.

In most instances, index funds or exchange traded funds are always a better choice.