You Should Evacuate Before Your Mutual Fund Liquidates

If you happen to own a struggling fund -- say, one that invests in the emerging markets -- your investment could very well go the way of the Ford Pinto.

This year, mutual-fund companies are liquidating funds at a record-setting pace. And if you happen to own a beleaguered bond or emerging-markets fund, yours could be the next to go.

Many investors, who have already had to deal with dreadful performance of a struggling fund, may be wondering whether it's worth it to look for signs of life. The answer: Things will probably get worse until the fund gets liquidated, so it's best to get out while you can. ...