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Assessing Asset Growth in Mutual Funds

Russel Kinnel of Morningstar.com looks at ways to determine whether a fund's assets have grown unwieldy, in this article from MiamiHearld.com. He suggests fund investors should look at two categories of factors, the fund managers themselves, and how involved they, and their firm, are with other accounts. Looking at the managers, Kinnel points to three areas, turnover rate, depth of research team, and general asset levels where some funds have closed to new investors. He found that "the median point at which small-, mid- and large-cap funds closed to new investors... [was], small-cap funds, $800 million; mid-caps, $3 billion; and large-caps, $18 billion."