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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Closed fund  

Definition 1.

A mutual fund that is no longer issuing shares, mainly because it has grown too large.
 

Definition 2.

An open-end mutual fund that has temporarily or permanently suspended sale of shares to new customers, usually due to rapid asset growth. Outstanding shares are still accepted for redemption by the fund, and existing shareholders may also buy shares in some cases. The primary reason for closing a fund to new investors is that fund managers are concerned that if they increase the asset base of the fund any further, their current investment strategy will become too difficult to achieve.
 
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