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 7 months ago

How do ETF’s work? What is the difference between an ETF and Closed and Open End...

How do ETF’s work? What is the difference between an ETF and Closed and Open End Mutual Funds? If you are saving for your retirement does the choice have a big impact?

2. What are open-end mutual funds, closed-end mutual funds, unit investment trusts, hedge funds, and exchange...

2. What are open-end mutual funds, closed-end mutual funds, unit investment trusts, hedge funds, and exchange traded funds?

Discuss the difference in their structures that explain these differences between a closed-end fund and an...

Discuss the difference in their structures that explain these differences between a closed-end fund and an open-ended mutual fund: a) When investors buy shares of the open-end mutual fund (in the aggregate), the number of fund shares increase. But, this is not the case with a closed-end fund. Why? b) An open-end mutual fund keeps a larger % cash (or cash-equivalent) allocation in the portfolio than the closed-end fund does. Why?

Types of Mutual Funds include the followings except Select one: a. Open-end mutual funds b. Closed-end...

Types of Mutual Funds include the followings except Select one: a. Open-end mutual funds b. Closed-end mutual funds c. Superannuation guarantee funds d. Exchange-traded funds (ETFs) e. Index funds

Mutual Funds. What’s the difference between an open-ended and closed-ended mutual fund? Why does it matter...

Mutual Funds. What’s the difference between an open-ended and closed-ended mutual fund? Why does it matter (in terms of the types of assets held)?

What is the difference between Open and Closed Circulatory Systems? What is the difference between atrioventricular...

What is the difference between Open and Closed Circulatory Systems? What is the difference between atrioventricular and semilunar valves?

Define and explain Foreign Direct Investment. What is the difference between a closed and open Economy?...

Define and explain Foreign Direct Investment. What is the difference between a closed and open Economy? How would they obtain the financing for investment?

Why can closed-end funds sell at prices that differ from net value while open-end funds do...

Why can closed-end funds sell at prices that differ from net value while open-end funds do not? Book- Essential of investment by bodie

In the context of decision making theories, describe the difference between open-loop and closed loop models.

Please compare the Open-End versus Closed-End Mutual Funds (7 marks) (250 words limit)

Please compare the Open-End versus Closed-End Mutual Funds (250 words limit)

Question