Fund Spy

Should You Dump That Slumping Fund?

Russel Kinnel
This article was originally published in the December 2018 issue of Morningstar FundInvestor. It has been updated to reflect returns and other changes through January 2019. Download a complimentary copy of FundInvestor by visiting the website.

It’s been a rewarding but tricky time to invest. Fund managers who tend not to invest in technology and healthcare have had a very hard time keeping up with their benchmarks and peers. Some funds are way back in the pack.

That presents a challenge for fund investors. You have to figure out if your fund’s slump is temporary or if it will continue for years. At Morningstar, we dig to find out if the slump reveals fundamental flaws or newly developed ones. Alternatively, it could be that the fund still has the same strengths and may rebound when the market changes.

Russel Kinnel has a position in the following securities mentioned above: OAKLX. Find out about Morningstar's editorial policies.