Vanguard's precious metals fund is closed to new investors. Why? How do I get in?

Answer 1

Vanguard, and other companies, will close the Mutual Fund to new investors, because they already have an adequate amount of investments from shareholders, and do not wish to accept any more new investments at that time. They have enough money to manage at this time, and any more would be a burden, and not allow them to invest according to their agenda. They reserve the right to close to new investors, require a minimum initial investment, require minimum subsequent investments, options on reinvesting dividends and capital gains if they are paid at all. It is all in the Prospectus which you should read before investing in ANYTHING.

Answer 2

Funds close when they have more capital then they can wield efficiently.

For example, if they are holding 2.3 million in capital and are holding some losing equities, it is easier to move that capital elsewhere without disturbing markets (withdrawing moneys from certain sectors, etc.). If they have 2.3 trillion, it makes it much more difficult to move capital, and it takes many more increases (rising individual share prices, rising bond interest, higher dividends) for the NAV of the fund to increase.

Infrequently, closed funds will open when they reach a certain plateau and need some fresh capital. Keep watching the fund, and it may become open again in a few years; but by that time it probably won't be as profitable.

Answer 3

Sometimes if you can buy 1 share from an existing shareholder, you can then use that it open an account and invest more money.

First thing you would need to do is find an existing shareholder.