Definition of closed-end fund

A type of investment fund that has a fixed amount of share capital and cannot issue or redeem units according to shifts in demand. Normally listed on the stock exchange. Called an investment trust in the UK. The opposite of an open-end fund (or unit trust in the UK). The investment company operating a closed-end fund is called a closed-end management company. [1]

Also referred to as a closed-end mutual fund, closed-end funds are a type of actively managed investment fund containing multiple securities. However, unlike traditional open-end mutual funds, closed-end funds have a fixed amount of share capital and cannot issue or redeem units according to shifts in demand. Closed-end funds raise capital through initial public offerings (IPOs) and then are traded on exchanges like stocks.  [2]