Description
This article is from the A Guide to
Closed-End Funds (CEFs).
Investing in CEFs: The Rewards
Investing in closed-end
funds (CEFs), while undoubtedly exciting, can also be very
rewarding. Apart from just hoping that the underlying markets in which
the CEF has invested will perform well, a CEF investor who has done
his homework can often dramatically outperform the market, sometimes
with reduced risk. Such results depend on one of the principal
characteristics of CEFs: they sometimes trade at a discount and
sometimes at a premium to the NAV.
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CEFs, closed-end fund, premium, discount, volatility, trading, investing, leverage, yields, buying, selling, shares, money, funds, mutual funds, adventages, disadvantages, liquidity, commissions, brokers, source, information, reference
