Mutual funds originated with the Massachusetts Investors Trust in 1924, aimed at providing individual investors of modest means access to various securities. Closed-end funds (CEFs) differ from traditional mutual funds in that they trade on exchanges and have a fixed number of shares, affecting their market price relative to Net Asset Value (NAV). CEFs often yield higher returns, making them appealing to retirees and investors focused on income. CEFs have fewer redemption requirements, allowing for more investments in the market.
Closed-end funds (CEFs) trade on an exchange based on a fixed number of shares, so market price may differ from NAV. This structural difference allows CEFs to represent an alternative investment option alongside mutual funds.
Excellent double-digit yields can be obtained with a portfolio of selected CEFs, making them attractive to retirees and income-focused investors looking for potential high returns.
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