Investing in banks mutual fund - cut my losses or stay for a bit?

Investing / Others
1

Hello Mustachians,

I did what I believe to be a mistake a few years ago, which is to invest a significant sum of money through mutual funds at UBS and Raiffeisen (“Fonds de placement” as they call). I discovered later that they tend to underperform even the SMI while having pretty high expenses at 2% per year. Everything’s red of course.

I could cut my losses and then move everything onto the usual VT / VWRL and similar ETFs. I could also just wait it out a bit to regain the losses and maybe until I have enough cash on the side to buy a flat with that (currently at 50k in these funds, difficult to buy much right now…). Or maybe something else I didn’t consider?

Opinions?

2

Cut your losses. You’ll have recuperated your costs to switch within a few months (depending on which broker you’re buying with) through reduced TER alone.

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4

Which losses? This is pure anchoring bias.

You only lose if you sell stocks and stay in cash. What you are doing is to move your investment in stocks from one, less efficient vehicle, to another, more efficient one.

Just do it and don’t look back.

10 Likes