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 wasn't 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

It doesn't matter. If you want out get out now.

Reported returns have expenses figured in already.

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.

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...imCapGains2005

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

Dump is a harsh word. Not like you are not getting anything out of it. And I also think there is nothing to add here. You can be pretty sure to sell the bond.

Don't loose anything in hurry. You better judge and see for few more times. Who knows may be it proof to be worthy for you. Still the decision is yours. No suggestion is required for that.