Switch from Asia Pacific fund

Hi,

I invested a lump sum in a managed fund in August 2007 (perfect timing!). I chose an Asia Pacific fund as I thought that it would provide more growth over what I considered to be a slowing European/US market. I thought that I was being smart but my investment has dropped 40%.

Question is: should I switch out of this fund into a US/ European fund, seeing as these have tanked and will presumably rise or should I wait it out?

I don't need the money for at least five years (hopefully). I would like get back to where I started within that timeframe. Some growth on the original investment would be nice...

What should I do?

Herbie said:

I don't need the money for at least five years (hopefully). I would like get back to where I started within that timeframe. Some growth on the original investment would be nice...

What should I do?

Click to expand...

I would say leave it there and hopefully in a few months things will begin to pick up. I am in a very similar situation, having put €10K in an Emerging Market Economy fund that had been performing very well, but has also dropped 40% in the last year. It bugs the hell out of me that I didn't stick it in a high interest deposit account but how were we to know a year ago what has ultimately transpired? To take the money out now, with a big loss, and transfer into another equity based account to try and recoup the losses is a desperate and unadvisable action in my opinion.

Have to agree with gebbel. Got to be thinking long term on these. Don't try and beat the market now. If you start swtiching funds etc, it may also cost you on bid spreads and transfer fees if applicable..
Colm..

Thanks to you both - it probably does make sense to stick with it. Hindsight is a great thing but what can you do? Judging by the current mess many/most experts also got it wrong too...