Closed-end Fund

Closed-end fund is a type of fund that has a fixed number of shares outstanding, which are offered during an initial subscription period, similar to an initial public offering. Once the subscription period is closed, the shares are then traded on a exhange between investors, like a regular stock. Typically, the market price of a closed-end fund fluctuates in response to investor demands and can be influenced by changes in the values of its holdings, or its Net Asset Value. Unlike open-end mutual funds, closed-end funds may not be readily available to issue and redeem shares on a continuous basis, which means they can only be fulfilled when the fund investment tenure is over.

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