pretty self-explanatory question. I think I understand the benefits of an open-ended fund, but close-ended funds seem less attractive.
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Basically, you are giving up some of your liquidity as an individual investor, so the fund doesn’t need to have a big pool of liquid cash for investors looking to cash out.
This means a CEF can take on longer-term investments or use greater leverage. These types of funds can be useful for increased asset diversification or if you have a higher risk appetite.
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