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Closed End Funds

Started by Tedo, September 16, 2018, 08:19:23 AM

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Does anyone have insights or opinions on closed end funds? I'm exploring them for the high returns but notice they also have high fees. Would love some guidance.



I dont know too much about CEF's except what I have learned because a friend of mine tried to convince me to use what he uses.
In his case he is investing for "income" , which right off the bat is wrong for me as I believe one should invest for total return.

Anyway, the CEF's he uses have a very high pay out because half of that pay out is return of capital. Now, he is in a situation where he feels good because of the income, but its not all earnings half of it is his own money coming back to him. He is paying very high management fees on money he puts in the fund and that the fund simply turns around and gives back to him - crazy!

If the ones you are looking at do not involve destructive return of capital, then I have no opinion - just don't know enough about them.

I'll kep an eye on this thread and hopefully learn something.