A closed-end fund raises a fixed amount of capital through an initial public offering, following which the shares are traded in secondary markets. These funds use the offering’s proceeds to invest in various securities, aligned with their long-term objectives. Closed-end funds are typically actively managed, with portfolio managers monitoring the markets closely to make changes in their holdings to maximize returns. These funds cannot administer secondary offerings to raise additional capital, or buyback existing shares floating in the markets. Shares of closed-end funds often trade at a premium or discount to their net asset value (NAV), and their holdings tend to be highly leveraged.