Closed-End Funds

Closed-End Funds are investment funds that raise a fixed amount of money through an initial offering of shares. Once issued, the shares are traded on the stock market like individual stocks, and their prices fluctuate based on supply and demand, not just the fund’s net asset value. Unlike open-ended funds, they don’t issue or redeem shares daily. They can trade at a premium or discount to their actual value, providing opportunities and risks for investors. Essentially, they pool money to invest in a diversified portfolio, with market prices determined by investor interest.