You would think a blue-chip growth fund might be having a decent year, wouldn't you? There are blue-chip stocks that are hanging in there, and some of them are even doing quite well.
So what the heck is going on with
Invesco Blue Chip Growth fund? When I speak of funds that I think you have to dump because they don't seem to recognize that the era has changed, I am speaking of the Invesco Blue Chip Growth fund, which has escaped my wrath because it isn't called Invesco High Risk Tech fund, which certainly would have brought it to my rapier.
Of course, we don't know what is going on with the fund. It's got a January-dated disclosure on its site that tells you it was long
, to name two real losers. But maybe they've shoved these stocks into some other fund or dumped them entirely. But I can tell you this: This is a fund that embodies the phenomenon of amateurs playing pro. This fund jumps huge on
ramp days. It gets clobbered on any day that tech acts terribly. It is down 44% this year and has a three-year record of being down 31% (again, this is data from the firm's site). Oh man, that's terrible short-term performance
terrible long-term performance.
If you have been reading my stuff, you know I don't think that the kind of stocks this fund likely owns are going to come back this year. If you own this fund, take this loss and use it against the gains you may have achieved elsewhere. If you own it for your 401(k), switch to an index fund, for heaven's sake. This fund is a travesty.
I know we have all been brainwashed to hold these funds forever. And, if you owned this fund during the halcyon days -- for the last five years -- you are up 24.9%! It is incumbent upon you to pull out of this fund now if you are one of those people, before you give up that gain. I know Invesco. People keep giving Invesco's name to me as a fund company that continues to buy tech and buy it aggressively. You don't have to take it -- so don't.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to