Closed End Funds
I do not invest in closed end funds - but here is what I know.
In open ended funds, the share price is the total value of the fund, divided by the number of shares. If you pay $1, you get about $1 worth of assets.
In closed end funds, the share price is determined by the market. Some of these funds trade at a premium - For example, if you pay $1 for a share, the underlying assets may only be worth 80 cents. NEVER buy these funds.
In some other closed end funds, the share price might be at a discount to the underlying assets. For example, if you pay $1 for a share, the underlying assets may be worth $1.20. Some people like to buy these because they think that eventually the share price will catch up to the asset price and they will make a profit. I think they may wait a long time for that to happen. Also, maybe the underlying assets are having problems that are not yet widely known. Or, any number of reasons. It's a risk.
As to whether your advisor earns a commission by selling these, ask him/her directly. It can vary.
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