tag:blogger.com,1999:blog-3521318064826848712.post578087224988023701..comments2023-10-19T04:51:53.516-05:00Comments on The Legal Dollar: "Closed" Mutual Fund vs. "Closed End" Mutual FundManaging Partnerhttp://www.blogger.com/profile/05130017520583425490noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3521318064826848712.post-65694469940594824392010-02-07T17:34:39.069-06:002010-02-07T17:34:39.069-06:00Hi David - Certainly the ability to buy the fund a...Hi David - Certainly the ability to buy the fund at a discount to its NAV can be attractive. Also, the discount aspect is going to be more interesting if you are a short-term trader because it can add to the volatility of the underlying fund. However, from a buy-and-hold perspective, a 10% discount to NAV seems like it has less of an impact than a 50% increase in yield.Managing Partnerhttps://www.blogger.com/profile/05130017520583425490noreply@blogger.comtag:blogger.com,1999:blog-3521318064826848712.post-33111705214446506282010-02-05T17:22:14.813-06:002010-02-05T17:22:14.813-06:00I was switching to personal financial advising sin...I was switching to personal financial advising since it's what I did before law school. Not familiar with these, I'll have to keep them in mind. The discount thing is what's making it so attractive I think.david sandyhttp://www.mymemphisattorney.comnoreply@blogger.comtag:blogger.com,1999:blog-3521318064826848712.post-34975803833872580872010-02-04T11:10:48.637-06:002010-02-04T11:10:48.637-06:0010:57 - Thanks for the comment! However, you are ...10:57 - Thanks for the comment! However, you are confusing a fund type (closed) with an investment style (index). You can buy index funds as closed-end mutual funds rather than open-ended mutual funds (the closed-end mutual funds are commonly called ETFs -exchange traded funds- in this context). For example, you can buy the SP500 as an open-ended mutual fund through Vanguard (for example) or you can buy SPY or IVV like stocks - they are ETFs that track the SP500. Either way, you are still buying the index, it's just whether you are going to be on the hook for people's poor trading decisions as the open-ended fund has to liquidate assets when people want to cash out.Managing Partnerhttps://www.blogger.com/profile/05130017520583425490noreply@blogger.comtag:blogger.com,1999:blog-3521318064826848712.post-73278259504949964692010-02-04T10:57:20.949-06:002010-02-04T10:57:20.949-06:00This is incredible. I've read countless artic...This is incredible. I've read countless articles on investing, which generally come to the same conclusion: For 99% of people, index funds are the way to go. None of them even ADDRESSED closed end mutual funds, let alone compared the two. There's so much more to learn! Thank you again for a great post.Anonymousnoreply@blogger.com