Closed-end funds What are CEF's? Fidelity

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Mutual Funds and Mutual Fund Investing - Fidelity Investments

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Closed-end funds

Even though they have been traded in the US for over a century, closed-end funds (CEFs) are not well understood. Closed-end funds share some traits with mutual funds and ETFs, but there are a number of differences that set them apart.

Basics of closed-end funds

Learn what makes closed-end funds unique, so you can better decide whether they are right for you. Advance left Clicking this control will navigate one card to the left. Advance right Clicking this control will navigate one card to the right.

Return of capital

Delve into this 3-part series to understand how a return of capital might happen in a closed-end fund, and learn the difference between pass-through, constructive, and destructive return of capital. Advance left Clicking this control will navigate one card to the left. Advance right Clicking this control will navigate one card to the right. Closed-end funds may trade at a discount (or premium) to their NAV and are subject to the market fluctuations of their underlying investments. Shares of closed-end funds frequently trade at a market price that is a discount to their NAV. Closed-end funds are subject to management fees and other expenses. Fidelity Brokerage Services LLC, Member NYSE, , 900 Salem Street, Smithfield, RI 02917 946926.1.1

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Closed-end funds

Learn the differences between closed-end funds and mutual funds to decide which works best for you.