A closed-end fund is a portfolio of pooled assets that raises a fixed amount of capital through an [initial public offering](https://www.investopedia.com/terms/i/ipo.asp) (IPO) and then lists shares for trade on a stock exchange.

Like a mutual fund, a closed-end fund has a professional manager overseeing the portfolio and actively buying and selling holding assets. Similar to an exchange-traded fund, it trades like equity, as its price fluctuates throughout the trading day. However, the closed-end fund is unique in that, after its IPO, the fund's parent company issues no additional shares, and the fund itself won't redeem—buy back—shares. Instead, like individual stock shares, the fund can only be bought or sold on the secondary market by investors.