To Do List
What Should I Do If I Own a Poorly Performing Fund?
> Back to Article  
    Look up the profile of the fund in question on Morningstar.com and ask yourself the following questions:    
    How badly is the fund truly doing? Make sure you're using a relevant basis for comparison; a fund's Morningstar category is an especially useful tool.      
    Has there been a recent manager change? For more details on the new manager's approach, read the Morningstar analysis.      
    Is asset growth out of control? For funds investing in small companies, net-asset bases over $1 billion are a warning sign. Also look for funds saddled with large piles of cash because of all their new money.      
    Is there another fund available from my plan or fund company that will fill a similar role in my portfolio? With a employer-sponsored retirement plan, if there's not an adequate substitute, you'll be forced to decide between accepting mediocre performance in order to get full coverage of the investment universe or skipping out on a certain investment style.      
  © 2025 Morningstar Investment Management LLC