The Traderszone Network

Published in TZ Latest News 26 March, 2015 by The TZ Newswire Staff

Why Income-Oriented Closed-End Funds Remain Popular

Investors are prowling for more income, without adding much risk, than they can wring from the likes of CDs. So, closed-end funds (CEFs) continue to have a following. Unlike an open-end mutual fund, a CEF has a fixed number of shares. It doesn’t take in more money after its IPO . It trades like a stock. Price is based on supply and demand and the value of underlying assets. It can sell at a premium or a discount to its net asset value.

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