Where Did My Mutual Fund Go?
When mutual-fund investors are confronted with poor performance, they often head for the exits. Increasingly, fund companies are doing the same. So far this year, fund management companies including Liberty and Pilgrim have pulled the plug on a record 222 funds, or one out of every 49. They do it by merging weak funds into better performers, or by liquidating a fund's holdings and returning the proceeds to investors. With the bull market in retreat after a decade in which the number of funds has nearly quadrupled, the pace of mergers and liquidations is bound to pick up.
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