1. Headline
  1. Headline
By John W. Schoen Senior Producer
msnbc.com

Q: Through my 401K at work, I have invested in Fidelity Low Priced Stock Funds with about $15,000 in that particular fund currently. Over the past 3 years, its’ had some ups and downs, but overall it’s a solid performer. Four months ago I received a letter stating that it was going to be closed to new investors. What would be the reason behind this? Should I worry?Mark V., Grant Park, Ill.

A: There are a number of reasons why a fund manager chooses to close a fund to new investors, but one of the most common is that he or she doesn’t want the fund to get too big. According to Morningstar.com, “compared with its peers, this fund has a large number of portfolio holdings and small positions in those holdings.”  

So if the fund managers like to keep their positions small, they’ll have a harder time doing so if they have too much cash to invest.

© 2013 msnbc.com Reprints

Discuss:

Discussion comments

,

Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

More on TODAY.com

  1. Courtesy Tricia Somers

    How one nurse answered a dying mother's prayer for her son

    9/22/2014 7:32:10 PM +00:00 2014-09-22T19:32:10
  1. Frank Micelotta / FRANK MICELOTTA/INVISION/AP

    Kris Jenner files for divorce from Bruce Jenner

    9/23/2014 12:08:26 AM +00:00 2014-09-23T00:08:26
  1. Budweiser via YouTube

    Budweiser does it again with dog ad that makes us whimper

    9/22/2014 9:52:37 PM +00:00 2014-09-22T21:52:37
  1. John Moore / Getty Images

    Missing Afghan soldiers found trying to enter Canada

    9/22/2014 7:31:04 PM +00:00 2014-09-22T19:31:04
  1. Shutterstock

    Celebrate National Elephant Appreciation Day with these pictures

    9/22/2014 5:41:48 PM +00:00 2014-09-22T17:41:48