Closed Funds Still Rake It In

Mutual funds often turn away new money once they have grown so big that the fund manager has difficulty putting additional capital to work in a reasonable amount of time.

While that's generally a good thing for existing investors, it may give them a false sense of security. Just because a fund it closes its doors to new money doesn't mean it won't continue to gather significant assets.

Funds that advertise themselves as being closed often continue to accept money from existing investors. This is referred to as a "soft" close. It isn't as effective at stemming inflows as a "hard" close, in which funds stop accepting money from both new and existing investors. ...