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J.Lef
Guest
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 Posted:
Sat Nov 12, 2005 1:02 am Post subject:
should I dump this fund |
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I have one year of iras in the kaubx fund. I know, I know, but
it was my first entrance investment into the market that wasnt connected to
my employee contributions to various funds.
The back end load selling it(transferring to vanguard) would be
almost 4.75 percent. But the expense percentage is so high, I figure to
eventually more then make up for the load.
I figure I would wait at least until they declare the dividends
soon, and then make the transfer.
Any comments on this? Should I hold on to it? A/0 to date,
my other ira funds are doing better then this kaufman fund, especially when
expenses are figured in.
Thanks
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E
Guest
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| Posted:
Sat Nov 12, 2005 1:02 am Post subject:
Re: should I dump this fund |
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"J.Lef" <j.lef@verizon.net> wrote
| Quote: | I figure I would wait at least until they declare the dividends
soon, and then make the transfer.
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It doesn't matter. If you want out get out now.
| Quote: | Any comments on this? Should I hold on to it? A/0 to date,
my other ira funds are doing better then this kaufman fund, especially
when expenses are figured in.
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Reported returns have expenses figured in already. |
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Mark Freeland
Guest
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| Posted:
Sat Nov 12, 2005 7:49 am Post subject:
Re: should I dump this fund |
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"J.Lef" <j.lef@verizon.net> wrote in message
news:gg7df.41$GB1.29@trndny06...
| Quote: | I have one year of iras in the kaubx fund. I know, I know,
but
it was my first entrance investment into the market that wasnt connected
to
my employee contributions to various funds.
The back end load selling it(transferring to vanguard) would be
almost 4.75 percent. But the expense percentage is so high, I figure to
eventually more then make up for the load.
|
After eight years, these will convert to A shares, with "lower" expenses,
but since even the A shares have expenses of nearly 2% (and that's only
because they are waiving some fees!) you are right that you'll do better on
costs almost anywhere else.
| Quote: | I figure I would wait at least until they declare the dividends
soon, and then make the transfer.
|
The back end load is 4.75% of the lesser of the purchase price and the
current price (for this particular fund). So sometimes it pays to wait for
the distribution, since that lowers the current price of the shares. Since
you've owned the shares for a bit over a year, I'm guessing that your
purchase price was around $5/share. If the share price after distribution
is below that (and you don't reinvest the distribution), then you would be
better off waiting.
But, the projected distribution is around 6% of a current price of $5.60,
which would only drop the price by about $0.33, to $5.2x, which is still
higher than your purchase price. So you'll pay 4.75% of your purchase price
on those shares regardless of whether you sell now or later. And in the
meantime, you are still paying that high expense ratio. Bottom line - it is
cheaper if you sell now, because the distribution doesn't seem to buy you
anything.
http://www.federatedinvestors.com/sc?templ=prelimCapGains2005
| Quote: | Any comments on this? Should I hold on to it? A/0 to
date,
my other ira funds are doing better then this kaufman fund, especially
when
expenses are figured in.
Thanks
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--
Mark Freeland
nNeEwTs@sonic.net
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neutron
Guest
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| Posted:
Sat Nov 12, 2005 8:18 am Post subject:
Re: should I dump this fund |
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not anything to add to mark's clear, concise post. i agree, sell the
fund now. i hope this gives you enough votes of confidence. for some
people its hard to sell a fund. for others, like myself, its easier to
let go. good luck on your next pick. neutron |
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