A
closed-end fund (
CEF) or
closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. Unlike
open-end funds, new shares in a closed-end fund are not created by managers to meet demand from investors. Instead, the shares can be purchased and sold only in the market. This is the original design of the
mutual fund which predates open-end mutual funds but offers the same actively managed pooled investments. Closed-end funds sold publicly must be registered under both the
Securities Act of 1933 and the
Investment Company Act of 1940.