# Aberdeen Global Income Fund, Inc. (NYSE MKT: FCO)
» Closed-End Fund Center

Closed-End Overview

Understanding the Basics of Closed-End Funds

Investors sometimes confuse mutual funds -- also known as “open-end” funds -- with “closed-end” funds. Like traditional mutual funds, closed-end funds are professionally managed investment companies that offer individual investors a variety of benefits. While there are a number of similarities between these two types of investment companies, there are also quite a few important differences. The below table provides a side-by-side comparison to help investors better understand the basic differences.

In addition to offering investors opportunities to generate return through portfolio performance, dividends and distributions, closed-end funds also enable investors to potentially buy and sell shares in the market at beneficial prices.

Click on any of the key features below to access additional details that make closed-end funds important investment options.

Key Feature Closed-End Funds Open-End Mutual Funds
Professional Management Yes Yes
Diversification Yes Yes
Pursuit of Investment Objective Yes Yes
Follows Defined Investment Strategy Yes Yes
Economies of Scale Yes Yes
Relatively Low Management Fees Yes Yes
Liquidity Yes Yes
Pass Through Taxation Yes Yes
Distributions Yes Yes
Highly Regulated Yes Yes
Fund Companies Continuously Offer to Sell and Redeem Shares
No Yes
Share Price is Based only on Net Asset Value (NAV)
No Yes
Shares are Traded on Public Exchange Yes No
Shares are Priced Throughout the Day
Yes No
Shares May Trade at Premium or Discount Yes No
Initial Public Offerings and Subsequent Rights Offerings of Fund Shares Yes No
Stable Asset Base Yes No
Minimum Investment Required No Yes
Use of Leverage Yes Limited
Investment in Illiquid Securities Yes Limited
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