Remorse after buying mutual fund

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saminkalhor
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Remorse after buying mutual fund

Post by saminkalhor »

My Story:

Hey guys,

I have saved up around 92k CAD for a down payment of a Condo, but prices ramped up dramatically and I left behind! So long story short, I ended up putting it in a conservative income mutual fund (%40 of it in my tfsa) and what I have been seeing right now is everyday drops in NAV which is absolutely driving me crazy. I felt so scammed by my account manager at my bank branch that I called him and asked him to sell them all regardless of the loss! but I stopped and tried to calm down and educate myself around it. now I know I was such a blind banana when I ignored all the risks included by not knowing all the pieces of the puzzle. My question is when is the best time to get rid of them? I dont feel that I have the body and mind set to track the fluctuation on my so damn hardly earned money. I would really appreciate if you can help me…. I feel really really dumb..:( :beer: :twisted: :beer: :beer: :cry:
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Peculiar_Investor
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Re: Remorse after buying mutual fund

Post by Peculiar_Investor »

Welcome to FWF.

You are wise to stop, calm down and educate yourself.

What is the name of the mutual fund? Was it purchased with a deferred sales charge (DSC)? When was it purchased?
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AltaRed
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Re: Remorse after buying mutual fund

Post by AltaRed »

I will guess there is no DSC since the OP mentioned bank branch but I agree we need more details. The OP also has not given us the time period s/he is talking about.

The OP appears to not have done sufficient due diligence with respect to warnings the typical mutual fund or stock or ETF (other than money market funds and HISAs) could lose value at any time. In recent months, even a conservative income fund will have lost value due to increasing bond yields and decreasing valuations in many blue chip dividend paying stocks. That possibility should have been understood.
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ig17
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Re: Remorse after buying mutual fund

Post by ig17 »

How old are you? What is your goal for this investment? Save more for a condo? Retirement? Something else?

If condo: when do you plan to buy? Less than 3 years? 3-5 years? More than 5 years from now?
DanH
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Re: Remorse after buying mutual fund

Post by DanH »

saminkalhor, as you can see there are many waiting to offer some help/insights. One thing I"ll note pending more details is that if you invested in a "conservative income" fund that pays monthly income, you will see the unit price (NAVPU - net asset value per unit) fall every time it pays a distribution. That is logical when money is paid out of the fund; but that payout is typically reinvested back into the fund. That gives you more units. So have a look at that too - focusing more on your total market value of your holdings; not just the NAVPU.
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