Zombie Funds

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Zombie funds are a major problem for unsuspecting investors.

Essentially they are a dead (or ‘closed’) fund given a semblance of life by its fund manager, but they are soul-less.

Typically zombie funds can have:

  • High fees
  • Under performance;
  • Low funds under management so they get neglected; and
  • Limited flexibility.

And there are literally thousands of them.

When I last checked the Morningstar’s database of 11,000 funds, it uncovered about 3,000 closed funds.

What’s more alarming, was that close to two thirds (62.71%) of these funds were $10 million or less; with 52.12% being smaller than $5 million.  Not zombie funds yet – but how cost effective and well managed are they?

Unsure if you (or your family members) have a zombie fund?  Well ask an expert or visit for a free appraisal.