Exact(13)
"You have to be judicious in picking funds".
But picking funds based on their losses is dangerous, fund analysts warned.
Cheap for advice If you don't fancy picking funds yourself, there are online services that do it for you.
Just as no-one used to get fired for buying IBM computers, no one can be blamed for picking funds run by big managers such as Highbridge or D.E.
Rather than picking funds on the basis of their tax losses, a better approach is to find funds with good track records, then analyze their tax position, fund analysts said.
But unless you need help picking funds, stay away.
Similar(46)
Taxes are similarly damaging, and investors are wise to pick funds that keep annual tax bills to a minimum.
Yet during the fourth quarter, the model portfolio of No-Load Fund*X, a newsletter that picks funds mechanically according to momentum, lost 22.3percentt, according to the digest.
Some managers question whether it even makes sense to pick funds on the basis of their having not lost money in the last 10 years.
That's the opposite of what an investor might have expected by using Morningstar's ratings to pick funds at the beginning of that bull market.
It's possible to pick funds that can go long and short at the same time, gain only in bear markets or are market-neutral — producing a small return in any market climate.
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