Mutual fund investors who want to cut their losses now by selling their shares when markets plunge run the risk of losing out on big profits later. “Individuals almost always do the wrong thing whenever there is an extreme movement in the market,” Charles Biderman, CEO of TrimTabs Investment Research, told the Associated Press. A better way to go is to weather the stormy ride during a correction. Sell-offs by mutual fund investors seem to indicate that they’re watching the market a little too closely, which is not what mutual funds are all about; they’re supposed to be low maintenance.
