A year ago, there were about 200 mutual funds that had closed their doors to additional investments, but today, there are only about 40 such funds, according to Morningstar, The Baltimore Sun reports.

 

Vanguard, for instance, reopened two funds last month. The highly popular Sequoia Fund, which invests in Berkshire Hathaway and which has been closed for a quarter of a century, is now reopen, as well.

 

Funds typically close when their asset size swells to a point where it is unwieldy to invest in their sector. They might also close if their investment mandate is too thinly traded.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.