Home| Term of the Day closed fund An open-end mutual fund that has temporarily or permanently suspended sale of shares to newcustomers, usually due to rapid asset growth. Outstanding shares are still accepted forredemption by the fund, and existing shareholders may also buy shares in some cases. The primary reason for closing a fund to new investors is that fund managers are concerned that if they increase the asset base of the fund any further, their current investment strategy will become too difficult to achieve. |
Term of the Day closed fund
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