Vanguard Group, the nation's second-largest mutual fund firm, will to close two of its equity funds in order to temper asset growth of the funds.

The Vanguard Explorer Fund is now closed to any new accounts. Existing shareholders will be limited to $25,000 in investments, annually, per account. The Vanguard Precious Metals and Mining Fund is also closed to new accounts. However, existing shareholders in that fund are not being subjected to any future caps.

"Throughout our history, Vanguard has acted preemptively to restrict cash flows and maintain fund assets at reasonable levels to protect shareholders," said Vanguard Chairman and CEO John Brennan. "Given the funds' current asset levels and strong performance, we believe that taking these steps to limit future asset growth is reasonable, prudent, and in the best interest of shareholders."

Including these two, Vanguard now has six closed funds. Besides the two most recent there are the: Vanguard Primecap Fund, with $30 billion in assets; Vanguard Health Care Fund, with $26 billon in assets; Vanguard Opportunity Fund, with $8.9 billion in assets; and Vanguard International Explorer Fund, which has $2.5 billion in assets.

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