When do mutual funds stop accepting fresh investments?
Friday, March 10, 2017, 1:34 PM
This usually happens in case of small and mid cap funds, when the fund manager is unable to find suitable investment opportunities. There is no problem for existing investors. This is a good move for their protection. If new investors keep investing in these schemes, the fund manager must buy holdings/stocks at very high valuations. This could lead to a loss for investors.