What are the benefits of a CEF?

What are the benefits of a CEF?

  1. Leverage sophisticated investment strategies normally reserved for institutional investors, now accessible to retail
  2. CEFs offer regular income distributions, ideal for income-focused investors
  3. Enhance returns through leverage
  4. Higher potential income
  5. ​Exchange trade liquidity

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      Unlike mutual funds, which continuously issue and redeem shares based on demand, CEFs have a fixed number of shares. After the initial offering, shares of a CEF are bought and sold on the open market, which can lead to them trading at a premium or ...

    • How are CEFs priced?

      The market price of a CEF is determined by supply and demand in the market and can differ from the fund's NAV. This difference can result in the fund trading at a premium (price above NAV) or a discount (price below NAV).