About Closed-End Funds

Closed-End Funds

Differences between closed- and open-end funds

A closed-end fund differs from a traditional open-end mutual fund in significant ways. As its name implies, closed-end funds are closed to new investment capital after the initial offering. That is, the number of shares is limited to the initial offering, unlike open-end funds, which create new shares whenever there is demand. Below are outlined some of the important differences between open- and closed-end funds.

Closed-End Funds

  • Fixed number of shares, following an initial public offering
  • Share price is determined by the market
  • Shares may trade at a premium or a discount to underlying NAV
  • Shares are bought and sold on secondary market, like stocks; fund not required to buy back shares from investors
  • Greater flexibility in illiquid investments

Open-End Funds

  • Continuous sale of shares; new shares are issued as demand warrants.
  • NAV is determined once per day at market close
  • Shares are bought and sold at NAV
  • Shares are bought and sold by the fund
  • Investments in illiquid securities are limited

Fund-Related Questions

  • General questions about the Fund (e.g., performance, distributions, etc.) may be sent to vc@firsthandtvf.com.

    For security reasons, please do not send personal or account-related information to this e-mail address; all account-related questions should be directed to Shareholder Services at 1.800.331.1710.