New York - Our buy-side research team generally avoid purchasing closed end mutual funds that trade at premiums; however, we are attracted to closed-end funds that trade below their net asset values.
In our view, closed end funds make sense for investors who can hold them for the long-term. Many closed-end mutual funds pay monthly distributions and provide income. Ultimately, discounts are closed and when the fund trades at a premium, we would recommend selling them.
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