Hi there,

Can you tell me which Pacific Life fund it is? What other mutual funds you hold? And when you plan on spending this money?

We need to figure out whether the manager is doing his/her job (but is focused on a tough part of the market) or not. We also need to figure out whether this fund fits into you long-term investment objective.

How can you do this?

First, compare your Pacific Life Mutual fund to similar kinds of funds and to its market index to see if your manager is messing up, or if it's the markets that are hurting your investment.

Second, devise a personal investment strategy that includes a basket of different kinds of mutual funds. Ideally, you want a mix of different stock funds and at least one bond fund. The mix depends on your tolerance for risk and how long you'll be investing for. (The longer the time frame, the more risk you can afford.) Be sure that this Pacific Life fund fits into this plan.

Let's say you find that your fund is underperforming its peers, or doesn't fit into your plan after all, or is just too risky and makes you uncomfortable. It's still hard to say good-bye to a losing investment. Especially because you'll be locking in a loss when you do. (You're giving up on the chance that the fund will rebound and you'll recover your loss.)

Check out this MarketWatch article that lists five reasons to dump a mutual fund. Are your reasons on the list? If so, read this one from the Wall Street Journal on how to psych yourself up for the break-up, when it's time.

Thanks for the question.

Kristen