I am not an expert on closed end funds, but the main question to ask the advisor is whether the shares he/she is recommending are part of the IPO (initial publc offering) or are they shares that are being resold. If they are part of the IPO, I don't think there is any question that the advisor is selling the shares to make a large commission, and maybe even an additional incentive payment or reward. One of the reasons that a company starts a closed end fund is so they can raise money quickly by engaging a select number of financial sales people to "push" the fund to their regular clients. Once the IPO shares are sold, no more additional shares are ever created, which is why it is called a closed end fund.
As far as the investment potential, I don't see any advantage to the investor in buying a closed end fund versus an open ended fund.
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