My fund sort of closed. WTF does it mean??

[Soh]

I received a letter saying that my fund is closed to most new investors. I can still invest as I had some share before it closed.

So what does this mean? Why do a fund stop accepting new investors? Is this common?

Thanks,

Soh

[eastbay]

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So what does this mean?


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It means what it sounds like.

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Why do a fund stop accepting new investors?


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Because there are only so many good investment ideas, and you can only put so much money into each one. The bigger a fund is, after a point, the harder it is to manage, and the harder it is to get a good return.

Generally it is good for you if a fund you're in closes.

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Is this common?


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Yes.

eastbay