Closed-End Mutual Funds: CNBC Explains
By: CNBC Explains
One type of mutual fund is a closed-end fund, which has a share structure that locks in investors from the fund’s inception. Building off previous videos, Salman Khan of the Khan Academy explains how closed-end mutual funds work.
From this video, you’ll understand:
- The difference between open-ended and closed-end funds
- How liquidity is created in closed-end funds
Mutual funds make up a large portion of America’s retirement funds and investments. Salman Khan of the Khan Academy outlines a hypothetical example of how an open-ended mutual fund works with its investors.
