Welcome to CEF Channel. Closed End Funds — CEFs for short — are an interesting category of funds because for any given fund, a fixed amount of capital is raised and then the shares of the fund are traded just like any other stock. Therefore the pricing of the fund's shares in the market will react to fluctuating supply and demand forces, creating situations where shares of the fund may trade above or below the per-share net asset value.

Investors must therefore consider not just the investment objectives of the fund, not just the quality of the fund's management, not just the performance of a fund's underlying portfolio, but also consider when shares of the fund are trading at attractive entry/exit points. Learn more about how to invest in closed-end funds here, or dive right into CEF expert Michael Foster's system to profit from these price-to-NAV fluctuations.