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Hi--

I was looking for a Nikkei index fund, and found the Merill Lynch Mitts 2002 fund. Their web site didn't list it, so I called up their local office for a prospectus, and the broker told me there wasn't one available because it had "already started" and they only gave out a prospectus for "new" funds. He said it was a "closed" fund, not a mutual fund, but I could buy shares. Apparently the 2002 in the name means the fund matures in 2002, which I take to mean they sell all of the assetts and give out cash to the share holders.

I looked all over the Fools book I have, plus the web site, and there's no mention of a "closed" fund. Any pointers? Also, can anyone recommend an index fund that tracks the Nikkei?

Thanks,

Michael Czeiszperger
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Hi Michael:

"I looked all over the Fools book I have, plus the web site, and there's no mention of a "closed" fund. Any pointers?"
....................

I believe that a closed fund is an investment company that sells only a fixed number of shares similar to common stock. Basically, it is the same as a mutual fund, except that the mutual fund is always ready to sell more shares at any time. That's why mutual funds are also refered to as open funds. As a result, in addition to mutual fund growing due to market value, it will grow as more folks invest in it as well. On the other hand, the closed market fund will grow on market value only.

I hope this helps.

steven
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<<"I looked all over the Fools book I have, plus the web site, and there's no mention of a "closed" fund. Any pointers?"
....................

I believe that a closed fund is an investment company that sells only a fixed number of shares similar to common stock. Basically, it is the same as a mutual fund, except that the mutual fund is always ready to sell more shares at any time. That's why mutual funds are also refered to as open funds. >>

Not all mutual funds are open. Some close themselves to new investors at certain points. I think even Fidelity's big fund Magellan closed for a while (perhaps it's still closed -- not sure). Funds may close if they've gotten so big that it's beoming very hard to invest all their money. Or for other reasons.

Selena
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