Describe the functions of open and closed end funds and explain the key difference between them....

Describe the functions of open and closed end funds and explain the key difference

between them. Which of the two represents the more attractive investment?

Expert Solution

Close-ended funds might be attractive because they are actively managed funds to beat the general market return. They are traded on a stock exchange.

Opened funds are always valued at NPV. It's not in the case of Close-ended funds.

Close-ended funds strategy:
When the price is discount to NAV it's better to buy, When the price is premium to NAV its best time to sell a close-ended fund.

jeff jeffy answered 6 months ago

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