closed end fund

A collective fund which has a fixed number of issued shares traded on a stock exchange. Because the supply of shares is limited, they will rise and fall in value according to supply and demand just like ordinary company shares. In the UK, this is equivalent to an investment trust.

In contrast, open end funds are allowed to accommodate demand by issuing new shares, so the value of their units does not rise and fall in response to demand, but is more or less equal to the value of the fund's underlying assets. In the UK, this is equivalent to a unit trust.