What does it mean when a fund is "closed to new investors"?

When a fund is described as "closed to new investors," it means that the fund is no longer accepting new investments from potential investors. This can occur for various reasons, such as the fund reaching its target size, which can help to maintain its performance and liquidity. By closing the fund to new capital, the management can better manage the existing investors and the assets within the fund without becoming overly large or difficult to manage.

This decision is often made to protect the interests of current investors and ensure that the fund's strategy remains effective. In contrast, the other options suggest alternatives that do not accurately represent the nature of a fund being closed to new investors. For example, suggesting acceptance of new investors only through referrals is not applicable, as the closure status applies to new investments in general. Likewise, changing management strategy or indicating a future reopening of the fund does not align with the immediate implications of being closed to new investors.