409 Wait. And Other Helpful Hints.
Wait. And Other Helpful Hints.
Many of the funds that have closed at some point in the past 20 years have later reopened. Some have closed a few times, or restricted purchase to certain investors, but then reopened at a later date. The same hot money that forces sizzling funds to shut sometimes flees the fund when performance cools, leading funds to reopen their doors. In fact, reopening might be a sign that an asset class is being overlooked and is worth a second look.
Things To Know
- Some funds that close do reopen years later.
Don't miss the new funds
Besides watching for reopened funds, keep an eye out for new funds that promise to close at a point when they still have reasonably sized asset bases. But you still need to make sure that it has all the basics of a good fund: strong management, a good strategy, and low costs. If it doesn't, take a pass. There are thousands of open funds, and at least a few ought to meet your needs.
