There are many types of mutual funds, yet all of these funds can be broken into two main groups. Most of the funds out there are open end funds. These are the typical managed mutual funds and index funds you’d find in a 401k or invest in through an IRA. Logically, the other group is closed end funds. Before you invest your money you should know how these funds work.
What is a Closed End Fund?
A closed end fund is a mix between a mutual fund and a stock. A closed end fund invests in a basket of assets just like any mutual fund does, but it trades on an exchange like a stock. Continue Reading…