Fundsters who follow (or participate in) in the age-old debate over mutual fund size may want to read today's edition of USA Today
. Columnist John Waggoner ponders
whether or not the biggest non-money market mutual funds (notably the biggeset, Bill Gross
' $250 billion Pimco Total Return
and American Funds
' Growth Fund of America
) are just, well, too big.
Waggoner highlights two classic issues raised about giant mutual funds: not being allowed to own more than five percent of a given company (a common self-imposed mutual fund restriction) and having trouble buying and selling large positions (for fear of moving the market).
research director John Rekenthaler
and American Funds/Capital Group
spokesman Chuck Freadhoff both weigh in.
"There's no question that funds become too big and unwieldy. But there's a lot more speculation than knowledge about when a fund is too large," Rekenthaler told USA Today. "We all should be congratulating them, but we all should also be a bit wary."
Neil Anderson, Managing Editor
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