2nd October 2019

wikipedia
7

What is a close ended fund?

A closed-end fund (CEF) or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. Unlike open-end funds, new shares in a closed-end fund are not created by managers to meet demand from investors.

Moreover, which is better open ended or closed ended funds?

Open ended vs closed ended: Open-end mutual funds are bought and sold on demand at their net asset value, or NAV, which is based on the value of the fund's underlying stocks and is generally calculated at the close of every trading day. Investors can enter and exit these schemes anytime.

What is the difference between open and closed end funds?

Open-end funds are offered through a fund company that sells shares directly to investors. In contrast, a closed-end fund has a fixed number of shares offered by an investment company through an initial public offering. Thereafter, closed-end fund shares are traded on an exchange, just like an individual stock.
Write Your Answer

Rate

60% people found this answer useful, click to cast your vote.

3 / 5 based on 3 votes.

Bookmark

Press Ctrl + D to add this site to your favorites!

Share