A “closed-end fund,” legally known as a “closed-end company,” is one of three basic types of investment company. The two other basic types of investment companies are mutual funds and unit investments trusts (UITs).
Closed-end funds come in many varieties. They can have different investment objectives, strategies, and investment portfolios. They also can be subject to different risks, volatility, and fees and expenses.
Closed-end funds are subject to SEC registration and regulation, which subjects them to numerous requirements imposed for the protection of investors. Closed-end funds are regulated primarily under the Investment Company Act of 1940 and the rules adopted under that Act. Closed-end funds are also subject to the Securities Act of 1933 and the Securities Exchange Act of 1934.