Dipping in and out of funds is damaging for long-term investors

Should short-term investors in a fund receive the same service standards and deal terms as those who...

Should short-term investors in a fund receive the same service standards and deal terms as those who stick with the portfolio for the long term? At a time when markets are volatile, more and more fund managers are acting like traders in stocks rather than investors. It is a strategy being mirrored by some of the largest investors in the retail space - the fund of funds managers. The rationale for much higher turnover is understandable as the opportunities to make money in a flat or falling market are scattered and relatively brief in duration. But dipping in and out of funds comes at a pr...