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Act upon Mutual Fund Problems

Whenever a problem arises with your mutual fund investment, don't ignore it, but act upon it. During your participation in a mutual fund you may incur problems with your stockbroker, portfolio account or investments. Don't postpone their resolution, but undertake actions as soon as possible in order not to deteriorate your situation.

If the immediate reaction to an occurred problem is ignored, a chain reaction of further problems may follow. Once your stock broker has broken the rules, you are not guaranteed that it will not happen again. Undertake the appropriate actions to let him/her know that you are aware of his/her misbehavior. The problem itself may deteriorate with the time while you wait for the broker to fix it, if he has the intention to do it at all.

A problem in your mutual fund investment portfolio should be treated as flu. The longer you don't make the necessary actions to heal it, the worse your condition gets. The integrity of your mutual fund investment is at stake if you don't get the necessary precautions for a long time. Your silence when a problem occurs may be interpreted as a sign of approval of the wrong doing and thus may be used against you when you later decide to act upon it. Additionally, it may be too late to respond to the problem if you postpone it due to the already high losses incurred.

Your inactivity regarding the resolution of the problem may be interpreted by the mutual fund company as a lack of whatsoever problem. Thus, later in time, when your situation weakens further, the mutual fund brokerage firm may defend itself by the statement that the previous unresolved problem led to the new ones. The mutual fund company may place the ball in your position and blame you for the further problems, which otherwise would have been prevented if you have informed the firm in a timely manner. Additionally, when you have to deal with an arbitration panel years after the actual occurrence of the problem, the clarity of the problem itself may have diminished. Thus, it will be more difficult for you to defend your position.

As a conclusion, never leave today's work for tomorrow, because you may end up with less money in your mutual fund account as result of your ignorance. Avoid the undesirable problem chain that may appear by solving the problem from the start.

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