Discount Funds pdf Unlike their more popular open-end mutual fund counterparts, closed-end mutual funds (CEFs) often sell at a discount from net asset value. Other things equal (they often aren’t), a fund selling for a discount offers better value. Closed-end funds represent a much smaller percentage of the “investment company” universe than open-end funds, and they sometimes lack liquidity. If your investment advisor did not suggest CEFs to you when their discounts reached historic gaps below net asset value in 2008-2009, a fair question is why you weren’t advised of the opportunity to buy stocks and bonds indirectly at large discounts from their market prices.
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An overview of mutual funds