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Close ended funds are mutual funds that have a lock-in period, i.e., you cannot redeem or sell your units before the date of maturity.

Let us say you invest in a 5 year close ended fund today, you can sell it only in 2014.

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Vicenta Nienow

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3y ago

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How and where to sell a closed ended mutual fund?

A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.


What is difference between closed end fund and exchange traded fund?

An exchange traded fund (ETF) is a type of fund that is traded intra-day on an exchange. Examples include index ETFs and closed-end ETFs. Usually people use the term closed-end funds, but they are a type of exchange-traded fund. An exchange traded fund (ETF) is a type of fund that is traded intra-day on an exchange. Examples include index ETFs and closed-end ETFs. Usually people use the term closed-end funds, but they are a type of exchange-traded fund.


What is the use of closed end mutual funds?

A closed end fund means that an investment company that raises a fixed amount of capital goods, gets is listed and traded on the stock exchange. This word means closed end mutual funds, but closed end fund is short.


What is the SIC code to a Closed-end investment fund?

The typical SIC code is 6726.


It has been said that many closed-end funds are worth more dead than alive What is meant by this expression?

The expression "many closed-end funds are worth more dead than alive" suggests that the market value of these funds may be less than their underlying net asset value (NAV). When a closed-end fund is not actively managed or is performing poorly, its share price can decline significantly, often trading at a discount to its NAV. In such cases, liquidating the fund's assets could yield greater value to shareholders than holding onto the fund, hence the phrase implies that closing the fund and distributing its assets may be more beneficial for investors than continuing its operations.

Related Questions

How and where to sell a closed ended mutual fund?

A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.


What is difference between closed end fund and exchange traded fund?

An exchange traded fund (ETF) is a type of fund that is traded intra-day on an exchange. Examples include index ETFs and closed-end ETFs. Usually people use the term closed-end funds, but they are a type of exchange-traded fund. An exchange traded fund (ETF) is a type of fund that is traded intra-day on an exchange. Examples include index ETFs and closed-end ETFs. Usually people use the term closed-end funds, but they are a type of exchange-traded fund.


What is the use of closed end mutual funds?

A closed end fund means that an investment company that raises a fixed amount of capital goods, gets is listed and traded on the stock exchange. This word means closed end mutual funds, but closed end fund is short.


What is A closed-end fund?

A Closed ended fund is one that does not accept further investments from investors once the initial offer period is complete.


What are the drawbacks of having a closed end fund?

The major drawback of a closed-ended fund is that if the market tanks, demand for the shares can evaporate overnight, leaving you holding a worthless investment. While a closed end fund has many benefits, there are also some drawbacks. The main drawback is that you can not use the initial capital to continue dividend payments.


What is the SIC code to a Closed-end investment fund?

The typical SIC code is 6726.


Can open end mutual funds short stocks?

The vast majority of mutual funds do not short stocks. Whether it is an open end or closed end fund is irrelevant. If a fund can short stocks, this strategy will be described as a "long-short" fund or something similar.


What is a closed ended fund?

A Closed ended fund is one that does not accept further investments from investors once the initial offer period is complete.


How can I set up a closed end fund?

To set up a closed-end-fund, it is best to contact an investment broker and they can explain to you the types of accounts available and determines what’s best for you. There are 2 main types of accounts: cash accounts and margin accounts. Look in the phone book for a broker or such service is usually offers at your local bank.


It has been said that many closed-end funds are worth more dead than alive What is meant by this expression?

The expression "many closed-end funds are worth more dead than alive" suggests that the market value of these funds may be less than their underlying net asset value (NAV). When a closed-end fund is not actively managed or is performing poorly, its share price can decline significantly, often trading at a discount to its NAV. In such cases, liquidating the fund's assets could yield greater value to shareholders than holding onto the fund, hence the phrase implies that closing the fund and distributing its assets may be more beneficial for investors than continuing its operations.


How many mutal fund in Nepal?

MUTUAL FUND IN NEPALNepal is a land lock country and it is between the two big growing economy country China in north and India in South,East&West.In Nepal there is not proper growing of Financial Markets so the Mutual Fund concept so in Nepal there is only two mutual fund the are:-NCM Mutual Fund &CBU Mutual Fund1. NCM Mutual FundThis fund is generated by Nepal Industrial Development Co-operation in 2059. This fund is an Open end fund.2. CBU Mutual FundThis fund is generated by Citizen Investment Trust and this is a closed end mutual fund.


What type of fund can you not use to adjust contracts?

closed/canceled