Should you invest in closed-end funds? | Author: Kalpen Patel | The Capital | October 2021

Hi everyone, thank you for coming back to my blog. I hope you found my last blog interesting and useful, in which I introduced “Why mid-cap stocks should be part of your portfolio.’

In this blog, I will introduce closed-end funds and the difference between them and open-end funds, and whether you should invest in them.

You are most likely familiar with mutual funds, and when investors refer to “mutual funds,” they usually refer to open-end funds.

Although closed-end funds have many similarities, there are also some significant differences. Knowing closed-end funds will help you make more informed decisions about whether they may become an investment tool to your advantage.

Since it is always easier to start with what is known, here is the main difference between open-end and closed-end funds.

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