Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Fidelity Closes Small-Cap Discovery Fund To New Accounts
I own this fund, and I was wondering when it was going to close; it has swelled in recent weeks. I wished he would have just shut the doors at end of day. Usuaully when they announce a fund is closing in two weeks. money pours in, having the opposite effect of which they were seeking and manager than has to put the money to work or risk sitting on cash. When a fund gets this large, its hard to buy a stock without affecting its price due to the quantity they need to establish a sizeable position. I am now a bit skeptical about keeping it, but will watch it. Anyone else feel this way about funds that don't close quick enough?
Fidelity, like most fund families, closes funds late and slowly. The best I've seen is Vanguard, that closes a fund at the same time it announces the fund closing.
Their closes are often "semi-hard", meaning that they're almost hard closes (not allowing any new money, even from existing investors), but they do typically allow investors to add $25K/year/SSN (not per account). Where Vanguard falls short is in not applying this rule evenly - if you're part of the hoity-toity (Flagship - over $1M in VG funds), you can open new accounts.
Getting back to Small Cap Discovery - at least Fidelity just gave Charles Meyers a co-manager this week over at Fidelity (Advisor) Small Cap Value, so his load has been lightened a bit.
Comments
Their closes are often "semi-hard", meaning that they're almost hard closes (not allowing any new money, even from existing investors), but they do typically allow investors to add $25K/year/SSN (not per account). Where Vanguard falls short is in not applying this rule evenly - if you're part of the hoity-toity (Flagship - over $1M in VG funds), you can open new accounts.
Getting back to Small Cap Discovery - at least Fidelity just gave Charles Meyers a co-manager this week over at Fidelity (Advisor) Small Cap Value, so his load has been lightened a bit.