Zombie funds are investment funds that are no longer able to generate profits or make new investments, but are still able to continue operating due to a lack of regulation or oversight. These funds may be poorly managed, have a small number of remaining assets, or be otherwise financially distressed, but they are still able to remain in operation.
Zombie funds can be a problem because they may continue to charge fees to their investors, even though they are not generating any returns. This can be frustrating for investors who may not be aware that their fund is a zombie fund, and may be losing money as a result.
To avoid investing in zombie funds, it is important to carefully research the financial health and performance of any investment fund before committing your money. You should also be aware of any fees or charges that the fund may be imposing, and consider whether these are reasonable given the potential returns.