Should I sell my mutual fund RYTRX and buy VIGRX fund?

Question

I own fund [RYTRX] since 2007 and there isn't a lot of money there, but I fear that as the fund grows so will the high fees. I am thinking of selling [RYTRX] and reinvest in [VIGRX] which has less fees. Question: will I get taxed on the gains even though I intend to reinvest immediately? Thanks in advance.

Jerry · Accepted Answer

You are taxed on gains when you sell.  If you have re-invested distributions, make sure to include those in your cost basis to minimize taxes.

RYTRX is categorized as a small blend fund.  VIGRX is a large cap growth index fund.  Not really comparable.

VSCIX would be the closest Vanguard equivalent to your Royce fund, and an excellent choice.

Common Sense · Answer

The "Royce Total Return Invmt" is a good fund. The 1.10% management fee is way above what I'd be willing to pay. The "Vanguard Growth Index" fund is also a good fund but it's a different type of fund... so comparison is really not fair...... Which product type is best for you? Only you can answer that. Comparing a managed fund with a "Total Return" goal is way different than a growth Index fund.

And yes..... you will be taxed. You're breaking rule #1 in investing. Understanding what you're investing in. It may be time to read a couple of books so you can make the appropriate decisions.

And yes..... you will be taxed.   You're breaking rule #1 in investing.  Understanding what you're investing in.    It may be time to read a couple of books so you can make the appropriate decisions.

Jack · Answer

tiger - - It looks like you are retired - or very close to retirement.  If there's only a "small amount of money" in this fund and you don't need the money to live on - - -then leave it alone.

I've got a question for you:  Why (at 65+) are you considering VIGRX?

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Should I sell my mutual fund RYTRX and buy VIGRX fund?

3 Answers