Can you make money buying closed-end fund shares by purchasing when discounts are “deep” and then selling when discounts narrow?
Perhaps. But short-term trading of these shares can be very risky. For starters, your commissions will reduce any returns you earn. Also, the factors which produce discounts in closed-end fund shares can take time to change. You may find that you bought a fund for the wrong reason–because it sells at a deep discount–rather than because it meets your investment objective.
