- The question today is, should you avoid CEF IPOs?
- From the data we have compiled, it seems that the averages come to be quite flat and it largely depends on the circumstances of its launch.
- One potential way to play this could be buying on day 1 and selling after 1-month of holding, for other time frames, it seems too much of a toss-up.
- Investing in a fund on IPO could be alright, from the data it certainly doesn't guarantee a loss; granted you want the type of exposure that the fund is expected to be investing towards.
For further details see:
Income Ideas: Should You Avoid Closed-End Fund IPOs?