What to Do When a Fund Manager Leaves

When do you stick with the old fund, and when do you move your money to a new one? It's often a difficult choice.

One of the toughest decisions a mutual fund investor has to make is what to do when a manager departs. Should you stick with the fund you've liked for years, or should you follow one of the managers to his or her new shop? What about when a manager retires or dies? Should you hold your shares or sell?

All of a fund's past returns are called into question. How much of the good returns was the work of the manager who's no longer there? You have to make a judgment call, and often it's not easy.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.