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URL:  http://boards.fool.com/what-are-the-advantages-and-disadvantages-of-a-14703989.aspx

Subject:  Re: Closed End Mutual Funds Date:  4/4/2001  11:07 PM
Author:  Latinus Number:  6481 of 19371

What are the advantages and disadvantages of a closed end fund?
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An important advantage: A manager of a closed-end fund does not have to deal with redemptions.
This makes it easier to manage the fund. In an open-end fund, redemptions may force the manager to sell stocks that he would not sell otherwise.
Similarly, the manager of a closed-end fund does not have to deal with unexpected inflows of cash from new investors.
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A disadvantage: I have found it more difficult to obtain detailed information about CEFs than about open-ends.

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