Bursting At The Seams

Reluctantly, mutual-fund managers shut the door on new money

EVERY WALL STREET EXECUTIVE DREAMS OF DROWNing in cash. For an increasing number of mutual-fund managers, the fantasy has become reality -- but an unwanted one. Inundated with $300 billion worth of new investments since 1990, many mutual funds, including the Fidelity Low-Priced Stock Fund and Janus Venture, have temporarily stopped accepting new investors. "There have been closings of funds before, but never so many," says Erick Kanter, vice president of the Investment Company Institute, a money-fund trade group. "Managers need time to plot their investment strategies." The steep growth of mutual funds, which reached a record value of $1.7 trillion...

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