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 Links:
Learn about the basics - and the pitfalls - of investing in mutual funds. Mutual Fund Basics Tutorial
Is the growth of mutual funds always good? Find out why a bigger fund isn't necessarily better. Does Size Really Matter?
Like a tune-up for your car, mutual fund rebalancing should minimize trouble down the road. Maintaining Your Mutual Fund Equilibrium
