More than 100 funds that had closed to new investors have reopened since the beginning of 2007, but advisers warn that investors shouldnt be so quick to jump in, The Wall Street Journal reports.
Before the market meltdown, most of the funds that closed to new investments were top performers that could not properly invest large influxes of cash, and so, shut down.
Now, beset with heavy redemptions and, in some cases, run by portfolio managers interested in taking advantage of low stock prices, a record number of mutual funds in a wide swath of investment categories have reopened their doors. But investors should make sure the same management team is in place and find out how well a fund performed during the period it was closed, experts warn.
