What is the difference between open-end and closed-end funds?

An open-end fund allows you to request redemption after investing, while a closed-end fund has a fixed term during which you cannot request redemption.

Because closed-end funds face no redemption pressure, they can also invest in assets that are hard to value fairly every day, such as real estate. Before investing, be sure to check whether early redemption is possible and when the fund matures.