Why on earth do investors stick with a cratering mutual fund? Syndicated columnist Chuck Jaffe speaks ill of the dearly departed Worldwide Fund
] to provide examples for six reasons.
In a MarketWatch
column, Jaffe takes a hard look at the fund, which Janus Capital Group Inc.
] merged with a smaller sister offering last week.
At its peak, just before the Internet bust of 2000, the fund boasted roughly $45 billion in assets. At the time of its demise, it had only $1.9 billion.
"The fundís performance has been so bad, youíd be hard-pressed to justify keeping your money riding with it," Jaffe writes. "Where Janus Worldwide once was a model of investing success, itís now a cautionary tale of why you should never stick with a fund when its results turn abusive."
So why would investors stick with a floundering fund. Jaffe guesses at, and then cruelly skewers, six rationalizations.
1. "It was good to me once."
2. "I'm waiting to get back to break-even."
3. "Itís really not so bad."
4. "It has new management."
5. "I don't want to pay the taxes."
6. "It can't stay bad forever."
The rest of Jaffe's can be found at MarketWatch.
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