After lagging performance led to massive outflows from its flagship Magellan fund, Fidelity Investments is closing two other large funds to new investments before they too get unwieldy. The news, which the firm announced late last week, comes on the heels of its recent announcement that it would be also be closing the $63.8 billion Fidelity Contrafund, currently the company's largest, to new investments.

The two additional funds that will close are the $19.9 billion Fidelity Growth Company Fund and the $11.9 billion Fidelity Mid-Cap Stock Fund. All three funds will be closed to new investments, except for by existing shareholders or through 401(k) plans that already offer the funds on their menu of options, as of 4 p.m. EST on April 28.

Analysts are praising the company for turning away new money, and subsequent fees, in favor of protecting the funds' ability to deliver strong performance at a reasonable size. Fidelity should be "applauded for turning away money [and] taking a longer-term view," Morningstar analyst Dan Lefkowitz told The Wall Street Journal.

The three funds have delivered stellar returns over the past three years, which is why they have been experiencing strong inflows, especially in recent months. Last year, for instance, the Fidelity Mid-Cap Stock Fund delivered a 16.1% return and the Fidelity Growth Company Fund delivered 13.5%, both trouncing the 4.9% that their benchmark, the S&P 500, returned. For its part, Contrafund has risen an average of 10% over the past three years, while the S&P 500, also this fund's benchmark, has averaged not quite 4% a year in that timeframe.

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