What Everyone Ought to Know About Closed-End Funds

In a recent survey of CEF Insider readers, a few asked me whether I prefer equity or debt closed-end funds (CEFs) and why. It’s an intriguing question because the two fund types act very differently. So let’s dive into these differences, and the benefits both breeds offer, so you’ll know which fits best in your portfolio now. Equity Vs. Debt Funds Put simply, an equity CEF has more than half its assets in stocks, while a debt CEF has more than half its assets in debts—usually corporate bonds, junk bonds or municipal bonds. Sometimes the lines get blurred, like with convertible-bond funds that also buy stocks.… Read more