Closed Fund
A mutual fund that has been closed - either temporarily or permanently - to new investors because the investment advisor has determined that the fund's asset base is getting too large to effectively execute its investing style. Investopedia Says:
Generally, current shareholders in a closed mutual fund are permitted to continue investing in the fund, but sometimes they are also be precluded from making additional investments.
A closed mutual fund should not be confused with a closed-end fund. This type of fund has a fixed number of shares, generally invests in specialized sectors, and is structured and listed as a stock on a stock exchange. Related Terms:
Asset Size
Closed-End Fund
Economies Of Scale
Mutual Fund
Net Asset Value - NAV
Net Asset Value Per Share - NAVPS
Open-End Fund |