Quote:
Originally Posted by LuvtheVillages
I just explained the advantage for some of these funds - If the closed end fund is trading at a discount to its Net Asset Value, you can buy a dollar's worth of stocks for less than a dollar.
The risk is time - you don't know how long it will take for the market value to adjust to NAV, if it ever does. All investments have risks.
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If it doesn’t adjust to NAV you still have been paid a good return from the dividend. Most of these funds pay 6% or more. These funds are more about income then capital gains.