Breaking up is hard to do: five reasons to sell a fund--and why it's good for your wealth.

Kiplinger's Mutual Funds, March, 2006 by Frick, Robert

THINK OF THAT ATTIC or garage crammed with stuff that, for whatever reason, you can't bear to part with. Your mutual fund portfolio may be a similar mess. The difference is, your home clutter is merely a fire hazard, but a poorly pruned portfolio can cost you real money. As much as you hate to trim back the number of shares or toss funds completely that you've become as fond of as your children (maybe more fond of--when was the last time a kid mailed you a dividend check?), you know there comes a time to let them go. Here are the five main reasons to sell.

1 Lack of balance. Remember the kid who was your perfect seesaw match? Rising to the apex took the merest push of your Keds on the playground sawdust. Keeping your portfolio properly balanced among many...

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