For income investors, closed-end funds, or CEFs, are an attractive investment class that offers high income generally in the range of 6-10%, broad diversification in terms of a variety of asset classes, and market matching total returns in the long term if selected carefully.
However, CEFs come with their own set of risks and challenges that the investors should be aware of. We list various risk factors at the end of this article.
For regular stocks, there are several well-known metrics that we could use to figure out if the stock was overvalued or undervalued