A closed-end fund (or closed-ended fund) is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. Unlike open-end funds, new shares/units in a closed-end fund are not created by managers to meet demand from investors. Instead, the shares can be purchased (and sold) only in the market. This is the original design of the mutual fund which predates open-end mutual funds but offers the same actively managed pooled investments.