Fidelity Puts Limits On 3 Mutual Funds

Six months after Fidelity Investments shut off its mammoth Magellan Fund to new investors, the company said Thursday it would limit three other funds including its second- and third-largest to existing shareholders.

As of April 3, Fidelity’s Growth & Income Portfolio, Contrafund and Low-Priced Stock Fund will be limited to current investors only.

“We have decided at this time to limit new purchases in these funds because we believe it is in the best interest of the funds’ shareholders,” said Robert C. Pozen, president of Fidelity Management & Research Company.

Employer-sponsored retirement plans that have already invested in the funds will be allowed to open new accounts for employees.

The Growth & Income fund has 3 million shareholder accounts, Contra 2.3 million, and Low-Price 809,000. Magellan, by contrast, has 4.7 million accounts.

Fidelity shut off the $68.7 billion Magellan fund - the world’s largest mutual fund - to new investors on Sept. 30.

Like Magellan, the three latest funds to be shuttered to new investors had experienced rapid growth.

“Clearly they wouldn’t be closing these funds if they didn’t sense that they were getting too big,” said Jack Bowers, who edits a newsletter for Fidelity investors.