Then the manager joined a rival fund and your money is in the hands of someone you know absolutely nothing about. If you sell shares to invest elsewhere, you will face taxes. Fund holdings overlap. You buy an assortment of funds to provide you with diversification. But a closer look will likely show that many of your funds own the same core group of stocks.
Funds create tax paperwork.
To minimize taxes, you have to keep highly organized records. Funds grow too large. You buy a fund because it has a great track record. Then thousands of other investors buy the same fund, flooding it with more cash than the manager can invest. The result in many cases is poor performance.