What are Closed End Bond Funds?
Closed end bond funds are a form of investment group or company that purchases and sells options in a manner that is in accordance with the expressed goals and objectives of the fund. A fund manager has full authority to handle all purchases and sales involving the investment portfolio. He or she may sell securities in order to generate resources that are used to purchase other securities, determine how long to hold onto any given investment, and how to diversify the options. Many closed end funds are multifaceted, in that they not only trade in bonds but also stocks. As with any type of investment strategy, closed end bond funds operate with an understanding that there is a degree of risk involved. At any given point in time, changes in the market place can cause investors to go with other investment options and steer clear of closed end bonds. When closed-in stocks are also handled by the same fund, the opportunity for market volatility to drive the value of the fund up or down incre
