One reason CEFs may be increasing in appeal is that their structure focuses on income generation and long-term growth. CEFs raise their investing capital at their IPO and after that, the funds are generally closed to new investors, and begin trading on an exchange where buyers and sellers transact with each other rather than the fund’s sponsor.
UBS’ Marfatia recommends that investors aim to understand the risks as well as the benefits associated with CEFs, especially how market volatility can affect NAVs and the ability for investors to sell large CEF positions into the market. “One: You're looking for income. Two: You're able to withstand the volatility that comes with it. And you have to be an aggressive investor to be buying a closed-end fund, especially taxable closed-end funds.
NuveenInv THE ROTSCHILDS DONT EXIST ITS A FKN CONSFIRACY THEORYIES
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Source: Forbes - 🏆 394. / 53 Read more »