Like any mutual fund in which you are considering investing, you should consider the expense ratio of the fund, covering costs such as management fees and expenses related to trades. It is good to invest in funds with relatively lower fees, since these fees ultimately can depress the funds’ gains. It is also important to note the yield of the funds, since closed-ended funds generate relatively more income than other types of funds, and the gains are taxable on investments in funds that are outside your retirement plans. Also, some experts suggest avoiding IPO closed-ended funds, as the discount between the initial offering and the net asset value typically becomes larger following the offering. It is also important to see how long a fund’s management team has been in place. If a fund has had a great deal of turnover or change in its team, one may experience decreased returns as a result.