NEW YORK (CNN/Money) - As the circle of mutual funds under scrutiny for improper trading (and now unfair fees) widens, you wonder what your next move should be.

The traits of a good fund are the same as they've always been: solid, long-term performance relative to its peers and benchmark index, below-average expenses and seasoned managers. It's also preferable to invest in a fund with a lower-than-average turnover in holdings to minimize your tax bite.

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But, of course, you also want a fund that's clearly operating in your best interests. And that's what's been called into question with the various probes that have been making headlines since Labor Day.

So you're left wondering, should you steer clear of those fund families that are being investigated for late trading and market timing? Do you assume that where there's smoke, there's fire and get out of all your funds? Or do you just stay put, assuming these things usually work themselves out?

Here are some of the answers.

Should I sell if my fund company comes under fire? You may be appalled at what your fund company is alleged to have done and be tempted to sell on principle.

That's a fine reason so long as it doesn't cost you too much. Will you be subject to a redemption fees? Will you have to pay capital gains taxes (remember, short-term capital gains are taxed at your income-tax rate)? And is there a comparable fund that suits your portfolio's needs?

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"By selling, you're making an ethical statement. But don't cut off your nose to spite your face," said certified financial planner Mari Adam.

There's another reason to stay put. It's unlikely the funds in the crosshairs of investigators will continue to flout the law or their own policies. "I don't think these abuses will continue," Adam said.

Hanging on, however, isn't a given, according to certified financial planner Tom Grzymala.

One concern is that your fund will face a lot of redemptions as a result of the probes.

Grzymala suggests comparing three sets of figures from Sept. 3 (when the mutual fund scandal first came to light) and today: daily volume trade, assets under management and fees.

If daily trades and fees are up significantly and assets under management are down (say 10 percent or more), that's a sign that other investors are pulling out -- and a sign you should sell, said Grzymala.

Here's why: heavy redemptions mean increased expenses and a bigger tax bill for remaining fund investors. Plus, the fund manager will have to make extra trades to meet redemptions, increasing trading costs and possible tax bills.

Another reason to sell has nothing to do with the scandal: if your fund's been a dog, with high fees, poor management and below-average returns (see When to dump a fund in Money 101).

If I don't sell, should I at least stop contributing more money? If you've been otherwise satisfied with your fund, and you'd rather not sell but you're still concerned about the unrest surrounding the company, hold off on making new contributions.

"Don't add new money until the company has its compliance under control," Adam said.

Instead, consider putting that new money in a fund that obeys what MONEY Magazine senior writer Jason Zweig identifies as the 10 commandments for mutual funds.

One sign a fund deserves your trust? The fund manager eats his own cooking by becoming one of the biggest shareholders in the funds he manages. Another good sign? Modesty about past returns and a realist's take on the prospect for future returns. (See which families rate high on those and other measures.)

Should I avoid mutual funds altogether? Despite the recent probes, mutual funds provide the best shot at investing in a diversified way if you don't have a lot of money. And while there's no denying there are bad apples that have to be thrown out, there are still far more good apples.

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"The vast majority of mutual fund companies are run in a basically ethical manner," Grzymala said.

But if you want to reduce your exposure to mutual funds, you might consider exchange-traded funds (ETFs).

ETFs trade like stocks but offer investment diversity because they invest in baskets of securities. The tax bite and fees of ETFs are less than that of mutual funds for two key reasons: expense ratios are far lower; and you only incur capital gains when you sell ETF shares whereas in mutual funds you can incur capital gains not only when you sell but every time your fund manager trades at a profit.

But ETFs can be more expensive if you make biweekly or monthly contributions to your investments. That's because you'll pay a fee every time you buy or sell shares, whereas in a mutual fund, you can set up a dollar-cost averaging program that lets you add to shares in your account on a regular basis without charge.

How much did I really lose as a result of market timing or late trading? As a group, investors may have lost billions of dollars. But as an individual, it's unlikely you lost much money if any at all.

Estimates about how much individual shareholders lost range from less than 1 percent a year in returns up to 2 percent. That's not negligible, but it's considerably less than the money you can lose if you're in an overpriced, oversized fund with poor management.

The truth is, no one's sure of the material costs, but the consensus so far has been that it's not great. "The impact in dollar terms is very small for most funds. But it's a serious principle that's been violated," said Russ Kinnel, director of fund analysis at Morningstar.

Will I ever get my money back? In theory, yes, but what restitution will look like – and when it will be paid -- is still unclear.

A number of fund companies alleged to have allowed improper trades have promised to make whole those investors who were harmed. To do that, they need to assess how much individuals lost and when.

But it's a process that is far from complete. "It's too early for us to give specifics," said Janus spokeswoman Shelly Peterson. She noted that the company's trustees currently are working with Ernst & Young to "determine what that restitution will look like."

Likewise, Deloitte & Touche is doing the number-crunching for the trustees of Banc of America's Nations funds. But, said Bank of America spokesman Bob Stickler, "They've not completed that work yet."

What's more, the investigation into improper trading started by New York Attorney General Eliot Spitzer's office plus the many class-action lawsuits filed against some of the fund companies under scrutiny may result in settlements that affect the total restitution package investors see.