Closed-end funds cannot be bought and sold every day. After the establishment, investors buy and then enter a long closed period. So how do these funds make money? Here is the income source of closed-end funds.

How do closed-end funds make money?

1. Earn the difference. There is a time limit for the trading of closed-end funds. If you want to sell, someone will want to buy, and you can make money by buying low and selling high.

2. Fund dividends stipulate the number of dividends paid by closed-end funds every year, and the annual dividend is ≥ 1 time, so fund dividends are also the income obtained by purchasing closed-end funds.

How to choose closed-end funds?

1, find a closed-end fund with good dividend performance;

2. Look for high-quality closed-end funds with high discount but always outperform the market (see the change of his net value)

3. If it is short-term, you can also look at the timetable for opening his expired seal. The closer, the better.

After reading the above introduction, I believe everyone has a more comprehensive understanding of how closed-end funds make money. After the closure period, closed-end funds will become open-end funds. At that time, investors can decide whether to redeem or continue to hold.