What’s a closed-end fund?
Closed end funds are mutual funds that have a fixed number of shares. Their shares are issued on the market in an initial public offering or IPO. From then on, they trade just like stocks. So their price is determined by market sentiment. Because of this, these funds can trade at a discount or premium to their net asset value (NAV). Because of this, closed-end funds allow you the means of purchasing a basket of stocks at a discount to their current market value.
