Closed-end funds are investment funds that raise a fixed amount of capital through an initial public offering (IPO) and then trade on a stock exchange. Unlike open-end funds, they do not issue new shares or redeem existing shares on demand. Instead, their shares are bought and sold among investors, which can lead to the fund trading at a premium or discount to its net asset value (NAV). These funds are managed by professional investment managers who invest in a diversified portfolio of assets, such as stocks, bonds, or other securities. Investors in closed-end funds can benefit from potential capital appreciation and income distributions, but they also face risks related to market fluctuations and the fund's performance.