What is the difference between a closedend fund and an openend fund?

What is the difference between a closed-end fund and an open-end fund Introduction: The World of Investment Funds Hello and welcome! When it comes to investing, there's a wide array of options available. One such avenue is investment funds. These funds pool money from multiple investors, allowing them to access a diversified portfolio, managed by professionals. Today, we'll be focusing on two types of investment funds: closed-end funds and open-end funds. While they share similarities, they have distinct characteristics that set them apart. Let's delve deeper! Structure: The Building Blocks of Funds The first major difference lies in their structure. Closed-end funds, as the name suggests, have a fixed number of shares. These shares are traded on exchanges, much like stocks. On the other hand, open-end funds, often referred to as mutual funds, have an ever-changing number of shares. This is because investors can buy or sell shares directly from the fund at the net asset value (NAV), which is calculated at the end of each trading day.