A closed-end fund refers to a specific fund structure. Like an open-ended fund, the closed-end fund manager raises cash from investors, lists the fund and invests the money to build the investment portfolio. But unlike an open-ended fund, an investor in a closed-end fund is not able to sell their shares in the fund back to the fund to generate liquidity. It is closed. An investor in a closed-end fund requiring liquidity has to find a third-party buyer for his or her shares in the fund. One of the benefits of the closed-end structure is the fund manager doesn’t need to maintain cash balances in the fund to finance share redemptions.