5 Best CEFs To Buy This Month (August 2022) (2024)

  • Closed End Funds

Aug. 20, 2022 9:30 AM ETBST, DNIF, EOS, MPV, OXLC, PFD, RMT, RQI, THQ, ZTR39 Comments

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  • For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promises high distributions and reasonable total returns.
  • Closed-end funds are generally characterized by higher volatility and deeper drawdowns than the broad market. For these reasons, they are not suited for everyone.
  • In this monthly series, we highlight five CEFs that have solid track records, pay high distributions, and are offering "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.
  • Looking for a portfolio of ideas like this one? Members of High Income DIY Portfolios get exclusive access to our model portfolio. Learn More »

5 Best CEFs To Buy This Month (August 2022) (2)

In this monthly article, we try to identify five closed-end funds ("CEFs") that have a solid past history, pay high-enough distribution and offer reasonable valuations at the current time.

The outlook for the market has vastly improved in the last few weeks, though we are still not out of the woods yet. The catalyst for the uptick was provided by much better employment job numbers than the consensus estimates, the falling crude oil prices, and a slightly lower inflation rate (8.5% in the month of July) than expected. Though one month does not make a trend, it is still positive. Also, we already have had two consecutive quarters of negative GDP growth, which technically qualifies as a recession. There are a lot of folks who believe that either we are already in a recession or we are heading into one. However, the stock market is a very good indicator of things to come in the next six to 12 months. If the current mini-rally holds and sentiment continues improving, then maybe we are done with recessionary pressures. But if this rally proves to be a bear rally and we go back lower and especially lower than the previous lows, that might indicate a deeper recession and harder times in the next three to 12 months.

Obviously, the CEFs have been moving up and down with the broader markets, sometimes with higher volatility due to the leverage. However, not all CEFs are created equal. Some of them have held up quite okay in this downturn, while others have not. Usually, equity-focused funds move in tandem with the markets or their respective sectors. However, there are many funds with underlying asset classes that are known to provide some level of divergence from the market. So, it is of utmost importance that we make our CEF portfolio a diversified one in terms of underlying asset classes. As our own benchmark, as of 07/08/2022, our "8%-CEF-Income" portfolio is down roughly 11% since the beginning of the year, compared to -18% of the S&P 500. Besides, for CEFs, we need to measure the attractiveness of a fund in terms of the income yield as long as that income is reliable and sustainable.

All that said, market uncertainties will always remain with us, but that should not prevent us from acting on our long-term investing goals. It's best to keep the focus on our long-term goals and strategies that have proven to work in good times and bad. If you are a new investor and/or starting a brand new CEF portfolio, our recommendation would be to start small and build the positions over time. We believe, for most investors (but not all), a 20%-25% allocation to closed-end and high-income funds should be enough. In that spirit, we keep looking for good investment opportunities and try to separate the wheat from the chaff on a regular basis.

Why Invest In CEFs?

For income-focused investors, closed-end funds remain an attractive investment class that offers high income (generally in the range of 6%-10%, often 8% plus), broad diversification (in terms of variety of asset classes), and market-matching total returns in the long term, if selected carefully and acquired at reasonable price points. A $500K CEF portfolio can generate nearly $40,000 a year, compared to a paltry $6,500 from the S&P 500. Now, if you were a retiree and needed to use all of that income, the portfolio probably might not grow as much, but it may still grow enough to beat the rate of inflation. That certainly beats investment vehicles like annuities. However, if you are in a position to withdraw 5% (or under 6%), the rest of the yield can be reinvested in the original fund or a new fund to ensure reasonable growth of the capital. In our view, if managed with some due diligence and care, a CEF portfolio could deliver 10% (or better) long-term total returns.

All that said, it's important to be aware of the risks and challenges that come with investing in CEFs. We list various risk factors at the end of this article. They are not suitable for everyone, so please consider your goals, income needs, and risk tolerance carefully before you invest in CEFs.

With that in view, one should buy selectively and in small and multiple lots. No one can predict the future direction of the market with any degree of certainty. So, we continue to be on the lookout for good investment candidates that have a solid track record, offer good yields, and are offering great discounts.

Five Best CEFs To Consider Every Month

This series of articles attempts to separate the wheat from the chaff by applying a broad-based screening process to 500 CEF funds followed by an eight-criteria weighting system. In the end, we're presented with about 30-40 of the most attractive funds in order to select the best five. However, please note that we do not consider funds that have a history of fewer than five years. We use our multi-step filtering process to select just five CEFs from around 500 available funds. For readers who are looking for a wider selection and diversification, we also include a list of top 10 funds.

This is our regular series on CEFs, where we highlight five CEFs that are relatively cheap, offer "excess" discounts to their NAVs, pay reasonably high distributions, and have a solid track record. We also write a monthly series to identify "5 Safe and Cheap DGI" stocks. You can read our most recent article here.

The selected five CEFs this month, as a group, are offering an average distribution rate of 8.69% (as of 08/12/2022). Besides, these five funds have an excellent past record and collectively returned 11.37%, 9.78%, and 10.71% in the last three, five, and ten years. The average leverage is low at about 11.4%, with an average excess discount of -3.5%. Since this is a monthly series, there may be some selections that could overlap from month to month.

Please note that these are not recommendations to buy but should be considered as a starting point for further research.

Author's Note: This article is part of our monthly series that tries to discover the five best buys in the CEF arena at that point in time. Certain parts of the introduction, definitions, and the section describing selection criteria/process may have some commonality and repetitiveness with our other articles in the series. This is unavoidable as well as intentional to keep the entire series consistent and easy to follow for new readers. Regular readers who follow the series from month to month could skip the general introduction and sections describing the selection process. Further, a version of this article is made available a few days early to the subscribers of the HIDIY Marketplace service.

Goals For The Selection Process

Our goals are simple and are aligned with most conservative income investors, including retirees who wish to dabble in CEFs. We want to shortlist five closed-end funds that are relatively cheap, offer good discounts to their NAVs, pay relatively high distributions, and have a solid and substantial past track record in maintaining and growing their NAVs. Please note that we are not necessarily going for the cheapest funds (in terms of discounts or highest yields), but we also require our funds to stand out qualitatively. We adopt a systematic approach to filter down the 500-plus funds into a small subset.

Here's a summary of our primary goals:

  • High income/distributions.
  • Reasonable long-term performance in terms of total return on NAV: We also try to measure if there has been an excess NAV return over and above the distribution rate.
  • Cheaper valuation at the time of buy, determined by the absolute discount to NAV and the "excess" discount offered compared to their history.
  • Coverage ratio: We try to measure to what extent the income generated by the fund covers the distribution. Not all CEFs fully cover the distribution, especially the equity, and specialty funds, as they depend on the capital gains to cover their distributions. We adjust this weight according to the type and nature of the fund.

We believe that a well-diversified CEF portfolio should consist of at least 10 CEFs, preferably from different asset classes. It's also advisable to build the portfolio over a period rather than invest in one lump sum. If you were to invest in one CEF every month in a year, you would have a well-diversified CEF portfolio by the year's end. What we provide here every month is a list of five probable candidates for further research. We think a CEF portfolio can be an important component in the overall portfolio strategy. One should preferably have a DGI portfolio as the foundation, and the CEF portfolio could be used to boost the income level to the desired level. How much should one allocate to CEFs? Each investor needs to answer this question himself/herself based on the personal situation and factors like the size of the portfolio, income needs, risk appetite, or risk tolerance.

Selection Process

We have more than 500 CEF funds to choose from, which come from different asset classes like equity, preferred stocks, mortgage bonds, government and corporate bonds, energy MLPs, utilities, infrastructure, and municipal income. Just like in other life situations, even though the broader choice always is good, it does make it more difficult to make a final selection. The first thing we want to do is to shorten this list of 500 CEFs to a more manageable subset of around 75-100 funds. We can apply some criteria to shorten our list, but the criteria need to be broad and loose enough at this stage to keep all the potentially good candidates. Also, the criteria that we build should revolve around our original goals. We also demand at least a five-year history for the funds that we consider. However, we do take into account the 10-year history, if available.

Criteria to Shortlist:


Brings down the number of funds to...

Reason for the Criteria

Baseline expense < 2.5% and Avg. Daily Volume > 10,000

Approx. 435 Funds

We do not want funds that charge excessive fees. Also, we want funds that have fair liquidity.

Market-capitalization > 100 Million

Approx. 400 Funds

We do not want funds that are too small.

Track record/ History longer than five years (inception date 2016 or earlier)

Approx. 375 Funds

We want funds that have a reasonably long track record.

Discount/Premium < +7%

Approx. 350 Funds

We do not want to pay too high a premium; in fact, we want bigger discounts.

Distribution (dividend) Rate > 5%

Approx. 260-290 Funds

The current distribution (income) to be reasonably high.

5-Year Annualized Return on NAV > 0% AND

3-Year Annualized Return on NAV >0%

Approx. 220-250 Funds

We want funds that have a reasonably good past track record in maintaining their NAVs.

After we applied the above criteria this month, we were left with 220 funds on our list. But it's too long a list to present here or meaningfully select five funds.

Note: All tables in this article have been created by the author (unless explicitly specified). Most of the data in this article are sourced from Cefconnect.com, Cefa.com, and Morningstar.com.

Narrowing Down To 50-60 Funds

To bring down the number of funds to a more manageable count, we will shortlist ten funds based on each of the following criteria. After that, we will apply certain qualitative criteria to each fund and rank them to select the top five.

At this stage, we also eliminate certain funds that have had substantial negative NAV returns for both three-year and five-year periods.

Seven Broad Criteria:

  • Excess discount/premium (explained below).
  • Distribution rate.
  • Return on NAV, last three years (medium-term).
  • Return on NAV, last five years (long term).
  • Coverage ratio.
  • Excess return over distributions.
  • The total weight (calculated up to this point).

Excess Discount/Premium:

We certainly like funds that are offering large discounts (not premiums) to their NAVs. But sometimes, we may consider paying near zero or a small premium if the fund is otherwise great. So, what's important is to see the "excess discount/premium" and may not be the absolute value. We want to see the discount (or premium) on a relative basis to their record, say 52-week average.

Subtracting the 52-week average discount/premium from the current discount/premium will give us the excess discount/premium. For example, if the fund has the current discount of -5%, but the 52-week average was +1.5% (premium), the excess discount/premium would be -6.5%.

Excess Discount/Premium = Current Discount/Premium (Minus) 52-Wk Avg. Discount/ Premium

So, what's the difference between the 12-month Z-score and this measurement of Excess Discount/Premium? The two measurements are quite similar, maybe with a subtle difference. The 12-month Z-score would indicate how expensive (or cheap) the CEF is in comparison to the 12 months. Z-score also takes into account the standard deviation of the discount/premium. Our measurement (excess discount/premium) compares the current valuation with the last 12-month average.

We sort our list (of 242 funds) on the "excess discount/premium" in descending order. For this criterion, the lower the value, the better it is. So, we select the top 10 funds (most negative values) from this sorted list.

(All data as of 08/12/2022)

Table 1:

High Current Distribution Rate:

After all, most investors invest in CEF funds for their juicy distributions. We sort our list on the current distribution rate (descending order, highest at the top) and select the top 10 funds from this sorted list.

Table 2:

Medium-Term Return on NAV (last three years):

We then sort our list on a three-year return on NAV (in descending order, highest at the top) and select the top 10 funds.

Table 3:

Five-Year Annualized Return on NAV:

We then sort our list on the five-year return on NAV (in descending order, highest at the top) and select the top 10 funds.

Table 4:

Coverage Ratio (Distributions Vs. Earnings):

We then sort our list on the coverage ratio and select the top 10 funds. The coverage ratio is derived by dividing the earnings per share by the distribution amount for a specific period. Please note that in some cases, the coverage ratio may not be very accurate since the "earnings per share" maybe three to six months old. But in most cases, it's fairly accurate.

Table 5:

Excess Return Over Distribution:

This is the "excess return" provided by the fund over the distribution rate. It's calculated by subtracting the distribution rate from the three-year NAV return.

Table 6:

Total Weight (Quality Score) Calculated Up to This Point:

Note: The Total Weight calculation is not fully completed at this point since we have not taken into account the 10-year NAV return. Also, we would adjust the weight for the coverage ratio at a later stage. However, we select the top 15 names on this basis.

Table 7:

Now we have 77 funds in total from the above selections.

We will see if there are any duplicates. In our current list of 77 funds, there were 31 duplicates, meaning there are funds that appeared more than once. The following names appear twice (or more):

Appeared two times:

  • ACV, BANX, BME, BST, BUI, ERH, HFRO, NIE, RQI, XFLT, ZTR (11 duplicates)

Appeared three times:

  • BCX, CII, CSQ, FFA, FUND, MPV, THQ (14 duplicates)

Appeared four times:

  • DNIF, OXLC (6 duplicates)

So, once we remove 31 duplicate rows, we are left with 46 (77 - 31) funds.

Note: It may be worthwhile to mention here that just because a fund has appeared multiple times does not necessarily make it an attractive candidate. Sometimes, a fund may appear multiple times simply for the wrong reasons, like a high current discount, high excess discount, or a very high distribution rate that may not be sustainable. But during the second stage of filtering, it may not score well on the overall quality score due to other factors like poor track record. That said, if a fund has appeared four times or more, it may be worth a second look.

Narrowing Down To Just 10-12 Funds

In our list of funds, we already may have some of the best probable candidates. However, so far, they have been selected based on one single criterion that each of them may be good at. That's not nearly enough. So, we will apply a combination of criteria by applying weights to eight factors to calculate the total quality score and filter out the best ones.

We will apply weights to each of the eight criteria:

  • Baseline expense (Max weight 5)
  • Current distribution rate (Max weight 7.5)
  • Excess discount/premium (Max weight 5)
  • 3-YR NAV return (Max weight 5)
  • 5-YR NAV return (Max weight 5)
  • 10-YR NAV return (Max weight 5, if less than ten years history, an average of three-year and five-year)
  • Excess NAV return over distribution rate (Max weight 5)
  • Adjusted Coverage Ratio (Max weight 5): This weight is adjusted based on the type of fund to provide fair treatment to certain types like equity and sector funds. We assign some bonus points to certain types of funds, which by their make-up depend on capital gains to fund their distributions, to bring them at par with fixed-income funds. These fund types include Equity/ Sector equity (two bonus points), real estate (two points), covered call (two points), and MLP funds (variable). However, please note that this is just one of nine criteria that are being used to calculate the total quality score.

Once we have calculated the weights, we combine them to calculate "Total Combined Weight," also called the "Quality Score." The sorted list (spreadsheet) of 46 funds on the "combined total weight" is attached here:


Sector-Wise (Asset-Class) Diversification:

In order to structure a CEF portfolio, it's highly recommended to diversify in funds that invest in different types of asset classes. The top 24 funds (out of 47) selected based on the types of asset class, and quality scores are listed below. This list includes no more than three funds from any single asset class. Also, please note that the quality score only indicates the likelihood of a good candidate, but investors should do further research and due diligence on individual names. Also, an otherwise good fund may not make it to the top because it may have become expensive and may not offer value at the current pricing.

In our list of 46, if we were to look at first on the basis of asset type (sector) and then based on the total quality score/weight, below is the list of top funds. However, if we had too many similar funds from the same fund family, we would generally ignore some of them to avoid duplicity. We selected 29 names as top funds this month. Please note that some asset classes may not show any names in a particular month due to the fact that these ratings are dynamic and time-sensitive and change from month to month.


Table 8:

10-Positions Portfolio Of The Month

If you were to select ten picks, we could simply pick the top one from each of the above categories. That said, due diligence on each name is still highly recommended. Please note that some of these funds may have cut their distributions recently, and for some folks, that may be a good enough reason not to consider them. Also, in our final selections, we tend to give priority to funds that pay regular and consistent distributions on a monthly or quarterly basis. Funds that may have inconsistent dividends (even if they are high) generally do not make it to our top list. Also, be aware that many times, single-country funds score high in our rankings. Many of them pay variable dividends. In addition, being single-country funds, they can be inherently riskier since their future returns are tied to just one country, be it economic, regulatory, or geopolitical factors.

Here's the list of the top 10 selections (from 10 different asset classes):

(MPV), (OTCPK:DNIF), (THQ), (RMT), (RQI), (ZTR), (BST), (EOS), (OXLC), (PFD).

Table 9:

Final Selection: Our List Of Final Top 5

5-Positions Portfolio of the Month:

Now, if we had only five slots for investment and needed to select just five funds, we would need to make some subjective choices. We think our list of 10 selections above is quite compelling, and there are certainly more than five names that we like. While we narrow down this list, we should be careful to keep the list as diversified as possible in terms of asset classes. Since this step is mostly subjective, the choice would differ from person to person. Nonetheless, here are the selections for this month, based on our perspective:

  • MPV
  • DNIF
  • THQ
  • EOS
  • OXLC

Table: The Final 5 Funds:

Table 10:

Some information about the selections:

  • We recommend that readers look at both the top 10 and top 5 lists. The top-10 list offers much more of a diversified lot (compared to the top 5) for the current market environment.
  • MPV and MCI are two similar funds from the Barings group and were incepted in 1988 and 1971, respectively. Last month, we selected MCI, but this month we have chosen MPV over MCI due to better discounts and excess-discount. Though, one could choose MCI as well. They both have a long history of success, but MCI has performed slightly better over the years. MPV has returned a CAGR (Compounded Annual Growth Rate) of 10.60% since Jan.1, 1995, compared to 9.65% from S&P500. The fund investments are privately placed, below-investment-grade, long-term corporate debt obligations with equity features such as warrants, conversion rights, and at times, preferred shares. It usually makes these investments directly from its issuers. The daily trading volume for MPV is quite low, so due caution is required. MCI has better daily volumes, so it may be a better choice for some.
  • DNIF - It is a dividend fund invested in dividend stocks (nearly 85% from the US market). The fund uses almost no leverage and currently yields 8%. The discounts on this fund have historically been very high, but they are even better right now. These large discount works in favor of the fund as it has to support a much lower yield on NAV (roughly 5%), while it is over 8% on the market price. The past performance record (3-year, 5-year, and 10 -year) is very decent.
  • THQ - This is our sector-specific fund from the healthcare sector. Currently, the excess discount (over 52-week average) is much better and supports a decent yield (not great, though). The fund has provided very decent past performance returns. The other similar fund is BME, which was shortlisted. But BME provides a much lower yield and trades at a premium rather than a discount.
  • EOS is a covered call fund from the Eaton Vance family, focused on both dividend and growth stocks. The distribution yield is 8.5%, and the past performance record is one of the best in its category.
  • OXLC appeared in our selections last month as well. The fund raised the dividend payout early this year, and its distribution is fully covered by net investment income. OXLC invests in Collateralized Loan Obligations (or CLOs). It invests primarily in senior, secured loans made to companies whose debt is unrated or rated below investment grade (Senior Loans), with the objective of generating income. The current yield is very high at over 14%.

Also, it should be noted that during the last quarter ending June 2022, its NAV dropped by about 22% (as of the end of June 22), even though the NII (net investment income) increased. However, the NAV has likely increased by 10% - 12% during the month of July. Many folks view this as a non-issue since this is the paper value (mark-to-market) of the CLO assets at a given moment in time, and it could go up or down based on the market sentiments. Nonetheless, it is a complicated fund and not very easy to understand, and that's why we would request readers to use caution and due diligence.

CEF-Specific Investment Risks

It goes without saying that CEFs, in general, have some additional risks. This section is specifically relevant for investors who are new to CEF investing, but in general, all CEF investors should be aware of it.

  • Leverage and high fees:

They generally use some amount of leverage, which adds to the risk. The leverage can be hugely beneficial in good times but can be detrimental during tough times. The leverage also causes higher fees because of the interest expense in addition to the baseline expense. In the tables above, we have used the baseline expense only. If a fund is using significant leverage, we want to make sure that the leverage is used effectively by the management team - the best way to know this is to look at the long-term returns on the NAV. NAV is the "net asset value" of the fund after counting all expenses and after paying the distributions. So, if a fund is paying high distributions and maintaining or growing its NAV over time, it should bode well for its investors.

  • Volatility:

Due to leverage, the market prices of CEFs can be more volatile as they can go from premium pricing to discount pricing (and vice versa) in a relatively short period. Especially during corrections, the market prices can drop much faster than the NAV (the underlying assets). Investors who do not have an appetite for higher volatility should generally stay away from CEFs or at least avoid the leveraged CEFs.

  • Premium over NAVs:

CEFs have market prices that are different from their NAVs (net asset values). They can trade either at discounts or at premiums to their NAVs. Generally, we should stay away from paying any significant premiums over the NAV prices unless there are some very compelling reasons.

  • Asset-specific risk:

Another risk factor may come from asset concentration risk. Many funds may hold similar underlying assets. However, this is easy to mitigate by diversifying into different types of CEFs ranging from equity, equity covered calls, preferred stocks, mortgage bonds, government and corporate bonds, energy MLPs, utilities, and municipal income.

Concluding Thoughts

We use our screening process to highlight five likely best closed-end funds for investment each month. We also provide a larger list of ten CEFs, with some of the top candidates from each of the asset classes. As always, our filtering process demands that our selections have an excellent long-term record, maintain decent earnings to cover the distributions (in certain categories), offer an average of 7%-8% distributions, are cheaper on a relative basis, and offer a reasonable discount. Also, we ensure that the selected five funds are from a diverse group in terms of the types of assets. Please note that these selections are based on our rating system and are dynamic in nature. So, they can change from month to month (or even week to week). At the same time, some of the funds can repeat from month to month if they remain attractive over an extended period.

The selected five CEFs this month, as a group, are offering an average distribution rate of 8.69% (as of 08/12/2022). Besides, these five funds have an excellent past record and collectively returned 11.37%, 9.78%, and 10.71% in the last three, five, and ten years. The average leverage is low at about 11.4%, with an average excess discount of -3.5%.

When it comes to CEF investing, we always recommend that it's best to be a bit conservative and build our positions by adding in small and multiple lots to take advantage of dollar-cost averaging. We believe that the above group of CEFs makes a great watch list for further research.

5 Best CEFs To Buy This Month (August 2022) (13)
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This article was written by

Financially Free Investor




Author of

High Income DIY Portfolios

High-income, lower-risk portfolios suited for income-seeking investors.

I am an individual investor, an SA Author/Contributor, and manage the “High Income DIY (HIDIY)” SA-Marketplace service. However, I am not a Financial Advisor. I have been investing for the last 25 years and consider myself an experienced investor. I share my experiences on SA by way of writing three or four articles a month as well as my portfolio strategies. You could also visit my website “FinanciallyFreeInvestor.com” for additional information.

I focus on investing in dividend-growing stocks with a long-term horizon. In addition to a DGI portfolio, I manage and invest in a few high-income portfolios as well as some Risk-adjusted Rotation Strategies. I believe "Passive Income" is what makes you 'Financially Free.' My personal goal is to generate at least 60-65% of my retirement income from dividends and the rest from other sources like real estate etc.

My current "long-term" long positions (DGI-dividend-paying) include ABT, ABBV, CI, JNJ, PFE, NVS, NVO, AZN, UNH, CL, CLX, UL, NSRGY, PG, KHC, TSN, ADM, MO, PM, BUD, KO, PEP, EXC, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, VOD, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, O, NNN, WPC, TLT.

My High-Income CEF/BDC/REIT positions include:


In addition to my long-term positions, I use several "Rotational" risk-adjusted portfolios, where positions are traded/rotated on a monthly basis. Besides, at times, I use "Options" to generate income. I am also invested in a small growth-oriented Fin/Tech portfolio (NFLX, PYPL, GOOGL, AAPL, JPM, AMGN, BMY, MSFT, TSLA, MA, V, FB, AMZN, BABA, SQ, ARKK). From time to time, I may also own other stocks for trading purposes, which I do not consider long-term (currently own AVB, MAA, BX, BXMT, CPT, MPW, DAL, DWX, fa*gIX, SBUX, RWX, ALC). I may use some experimental portfolios or mimic some portfolios (10-Bagger and Deep Value) from my HIDIY Marketplace service, which are not part of my long-term holdings. Thank you for reading.

Disclosure: I/we have a beneficial long position in the shares of ABT, ABBV, JNJ, PFE, NVS, NVO, UNH, CI, CL, CLX, GIS, UL, NSRGY, PG, KHC, ADM, MO, PM, BUD, KO, PEP, D, DEA, DEO, ENB, MCD, BAC, PRU, UPS, WMT, WBA, CVS, LOW, AAPL, IBM, CSCO, MSFT, INTC, T, VZ, VOD, CVX, XOM, VLO, ABB, ITW, MMM, LMT, LYB, RIO, ARCC, AWF, BST, CET, CHI, DNP, EVT, FFC, GOF, HCP, HQH, HTA, IIF, JPC, JPS, JRI, KYN, MAIN, MCI, TLT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock. The author is not a financial advisor. Please always do further research and do your own due diligence before making any investments. Every effort has been made to present the data/information accurately; however, the author does not claim 100% accuracy. The stock portfolios presented here are model portfolios for demonstration purposes. For the complete list of our LONG positions, please see our profile on Seeking Alpha.

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5 Best CEFs To Buy This Month (August 2022) (2024)


Which fund is best for 2022? ›

Best Performing Debt Mutual Funds
Fund Name3-year Return (%)*5-year Return (%)*
DSP Government Securities Direct Plan-Growth6.50%7.56%
SBI Magnum Medium Duration Fund Direct -Growth7.00%7.54%
ICICI Prudential Short Term Fund Direct Plan-Growth7.16%7.45%
HDFC Credit Risk Debt Fund Direct-Growth7.78%7.45%
6 more rows

What will be the best performing asset class in 2022? ›

Also, ETMarkets.com is now on Telegram. Beating both equities and bonds, gold has turned out to be the best performing asset class so far in the calendar year 2022.

Are CEFs better than ETFs? ›

ETFs typically have lower fees and can be bought and sold throughout the day, while CEFs often offer a higher level of income but come with higher fees. Ultimately, the best choice for you will depend on your specific investment goals and objectives.

Which mutual fund has highest return? ›

High Return
  • Tata Small Cap Fund Direct Growth. ...
  • Edelweiss Small Cap Fund Direct Growth. ...
  • Quant Flexi Cap Fund Growth Option Direct Plan. ...
  • Quant Active Fund Growth Option Direct Plan. ...
  • PGIM India Midcap Opportunities Fund Direct Growth. ...
  • Quant Small Cap Fund Growth Option Direct Plan. ...
  • Kotak Small Cap Direct Growth.

Which fund to invest now? ›

Scheme NamePlanYTD
Sponsored AdvInvest Now UTI Value Opportunities Fund - Direct Plan - GrowthDirect Plan2.47%
Large & Mid Cap Fund
ICICI Prudential Large & Mid Cap Fund- Direct Plan - GrowthDirect Plan8.85%
Quant Large and Mid Cap Fund - Direct Plan - GrowthDirect Plan9.08%
28 more rows

What are the top 10 assets? ›

15 Most Important Assets That Will Increase Your Net Worth
  • Owning Your Primary Residence. Homeownership ranks among the most common ways people gain a substantial increase in net worth. ...
  • Second Home. ...
  • Retirement Savings. ...
  • Education. ...
  • Rental Real Estate. ...
  • Health. ...
  • College Savings. ...
  • Maintain Your Home.
5 days ago

What do rich people invest in? ›

Instead, UHNWIs understand the value of physical assets, and they allocate their money accordingly. Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork.

What are the top 10 stocks to buy in 2022? ›

Top 10 Stocks To Consider in 2022
StockPriceMarket Cap
Devon Energy Corp. (DVN)$65.12$43.128 billion
Marathon Oil Corp. (MRO)$25.76$17.455 billion
Qualcomm Inc. (QCOM)$124.77$143.104 billion
Berkshire Hathaway Inc. (BRK-A)$419,869$608.826 billion
6 more rows
22 Sept 2022

What is the best performing asset? ›

So it might seem strange that cash has been named as most likely to be the top performing asset class in 2022 ahead of stocks, bonds, cryptocurrency, NFTs and property.

Should I buy gold now in 2022? ›

So what's my overall verdict on whether you should invest in Gold and Silver in 2022? The answer is yes, so check it out. Invest some money into precious metals in 2022 because it protects against inflation and economic uncertainty.

Is buying gold a good investment in 2022? ›

Yet, what may not be evident to everyone is that gold has outperformed most major assets so far in 2022 (Chart 1). In fact, gold has done much better than inflation-linked bonds both in the US and elsewhere. And we believe that gold's performance so far this year reflects the behaviour of its underlying drivers.

Should you invest in CEFs? ›

Closed-end funds are one of two major kinds of mutual funds, alongside open-end funds. Since closed-end funds are less popular, they have to try harder to win your affection. They can make a good investment — potentially even better than open-end funds — if you follow one simple rule: Always buy them at a discount.

What is the downside to closed-end funds? ›

Its liquidity depends on the supply and demand of shares in the open market, and can therefore be less liquid. Subject to additional volatility since its net asset value is different from its price. Losses are amplified due to greater use of leverage.

Are closed-end funds good for retirement? ›

Closed-end funds have emerged as a potential solution for retirees seeking to smooth out their cash flows and in turn soothe their shaken nerves. Rattled retirees seeking steady payouts might want to consider closed-end funds.

Which fund is lowest in risk? ›

List of Low Risk Mutual Funds in India
Fund NameCategoryRisk
Edelweiss Arbitrage FundHybridLow
Invesco India Arbitrage FundHybridLow
Axis Arbitrage FundHybridLow
Mirae Asset Overnight FundDebtLow
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Is 2022 a good time to invest in mutual funds? ›

“In 2022 it's as good a time as ever to invest in Mutual funds and participate in the growth of world-class companies of the fastest growing large economies of the world.

Which company mutual fund is best? ›

Best Mutual Fund Companies in India
  • SBI Mutual Fund.
  • ICICI Prudential Mutual Fund.
  • HDFC Mutual Fund.
  • DSP BlackRock Mutual Fund.
  • Aditya Birla Sun Life Mutual Fund.
  • Kotak Mutual Fund.
  • L&T Mutual Fund.
  • Tata Mutual Fund.
16 Oct 2022

Which mutual fund is best for lumpsum 2022? ›

Best Mutual Funds for Lumpsum Investment 2022
Mutual Fund SchemeType of Scheme3 Year CAGR
HDFC Floating Rate Debt FundDebt- Floating Rate6.10%
Aditya Birla SL Money Manager FundDebt- Money Market5.10%
Aditya Birla SL Savings FundDebt- Ultra Short Duration5.30%
ICICI Prudential Liquid FundDebt- Liquid4%
6 more rows
22 Sept 2022

How do I choose a good mutual fund? ›

Factors for Selecting a Mutual Fund Category
  1. 1) Investment Objective. ...
  2. 2) Time Horizon. ...
  3. 3) Risk tolerance. ...
  4. 1) Performance Against Benchmark. ...
  5. 2) Performance Against Category. ...
  6. 3) Consistency of Performance. ...
  7. 4) Fund Manager's Experience. ...
  8. 5) AMC Track Record.
24 Jun 2022

Which mutual fund is best for 3 months? ›

  • Invesco India PSU Equity Fund.
  • SBI PSU Fund.
  • Nippon India Power and Infra Fund.
  • Motilal Oswal Midcap 30 Fund.
  • SBI Small Cap Fund.
16 Oct 2022

What is a good first asset to buy? ›

One of the first assets anyone regardless of age should get is a savings account. Despite low interest rates offered on a savings account, you can still earn a decent income from this asset.

What are some cheap assets to buy? ›

If you're ready to start buying assets as a beginner, here are some assets you can buy with a smaller budget.
  • Certificates of deposit (CD's)
  • Bonds.
  • Real estate investment trusts (REITs)
  • Dividend yielding stocks.
11 Aug 2022

How can I make my money grow faster? ›

Let's dive into the best tips to show you how to make your money grow!
  1. Set up an emergency fund. Before you even begin to think about how to grow your money, you need to think about your savings. ...
  2. Establish financial goals. ...
  3. Change your mindset. ...
  4. Set and stick to a budget. ...
  5. Pay off your debt. ...
  6. Earn more. ...
  7. Invest, invest, invest!
18 Jul 2022

What are the top 5 investments? ›

12 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Money market funds.
  • Government bonds.
  • Corporate bonds.
  • Mutual funds.
  • Index funds.
  • Exchange-traded funds (ETFs)
27 Sept 2022

What is the safest investment right now? ›

Here are the best low-risk investments in October 2022:
  • High-yield savings accounts.
  • Series I savings bonds.
  • Short-term certificates of deposit.
  • Money market funds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
1 Oct 2022

What stock will make me rich? ›

With that in mind, these 10 stocks could make you a millionaire in 2022:
  • Microsoft (NASDAQ:MSFT)
  • Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B)
  • Nvidia (NASDAQ:NVDA)
  • Nike (NYSE:NKE)
  • Innoviva (NASDAQ:INVA)
  • BrightSpere Investment Group (NYSE:BSIG)
  • The Aaron's Company (NYSE:AAN)
26 Jan 2022

Where should I invest 1000 right now? ›

How to Invest $1,000
  • Start (or add to) a savings account. ...
  • Invest in a 401(k) ...
  • Invest in an IRA. ...
  • Open a taxable brokerage account. ...
  • Invest in ETFs. ...
  • Use a robo-advisor. ...
  • Invest in stocks.
13 Oct 2022

How do I invest my money? ›

These options include:
  1. The Stock Market. The most common and arguably most beneficial place for an investor to put their money is into the stock market. ...
  2. Investment Bonds. Investment bonds are one of the lesser understood types of investments. ...
  3. Mutual Funds. ...
  4. Physical Commodities. ...
  5. Savings Accounts.

Which investment has highest return? ›

8 best investment plans in India for high returns
  • Saving Account.
  • Liquid Funds.
  • Short-Term & Ultra Short-Term Funds.
  • Equity Linked Saving Schemes (ELSS)
  • Fixed Maturity Plans.
  • Treasury Bills.
  • Gold.

Which investment gives maximum returns? ›

Comparison Table:
Type of SchemeMaximum Investment AmountMaturity
Real EstateNo maximum limitNot applicable
Gold ETFNo maximum limitNot applicable
Post Office SchemesRs.4.5 lakh5 years
ULIPNo maximum limit45 years
4 more rows

Should I keep cash 2022? ›

There are a lot of better choices than holding cash in 2022. Inflation will deteriorate the value of your savings if you decide to stash your cash in a bank account. Over the long run, you'll be better off investing now, even if expected returns are lower than they've been historically.

What is best time to buy gold? ›

Buying gold is both prestigious and auspicious for Indians. Gold sales grow throughout festivals and wedding seasons. The best time to buy gold, however, is during Makar Sankranti, Akshaya Tritiya, Dussehra, Dhanteras, and Diwali.

Which day is good for buying gold? ›

Dhanteras, Diwali 2022: Dhanteras, which marks the first day of Diwali in India, is considered auspicious to buy gold and silver as part of Hindu festivities.

What is the best gold to buy? ›

For us, the best type of gold to buy is physical gold bullion. The precious metal has been loved for centuries as a safe haven in which to grow and store wealth and physical bullion best reflects these qualities today. Holding gold as a physical commodity is in many ways fundamental to its appeal.

Is this the correct time to buy gold? ›

Best Time of Year to Buy Gold and Silver

The price cools down through the spring and summer, then takes off again in the fall. This means that on a historical basis, the best times to buy gold are early January, March and early April, or from mid-June to early July.

What is the cheapest way to buy gold? ›

Generally, the best deals on gold coins can be found on large retail websites that sell gold and silver coins and bars. The price per ounce decreases if you buy in bulk. Most retailers will give you a discount for paying directly from your bank account – or sometimes even when using Bitcoin.

Will gold rate decrease in coming days in 2022? ›

The Forecast suggests that Gold Rate for the 22 carat segment can increase by Rs.55 per gram, and for the 24 carat segment, it can increase by Rs.56 per gram of Gold.
Gold Rate Forecast or Prediction for Today (Oct 13, 2022)
Gold Rate Forecast for Today – 1 Gram Gold in INR
Date – 13th Oct 2022
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What Vanguard funds are doing well in 2022? ›

  • The Best Vanguard ETFs of October 2022.
  • Vanguard Short-Term Inflation-Protected Securities ETF (VTIP)
  • Vanguard S&P 500 Index Fund ETF (VOO)
  • Vanguard Emerging Markets Government Bond ETF (VWOB)
  • Vanguard Value Index Fund ETF (VTV)
  • Vanguard Total International Stock Index Fund ETF (VXUS)
1 Oct 2022

What is the safest investment with highest return? ›

Here are the best low-risk investments in October 2022:
  • High-yield savings accounts.
  • Series I savings bonds.
  • Short-term certificates of deposit.
  • Money market funds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
1 Oct 2022

What are the best performing funds in the UK? ›

Top UK equity funds
NameSectorReturn to June 21
Vanguard FTSE UK Equity Income IndexUK Equity Income4.39%
Jupiter UK Special SituationsUK Large-Cap Equity4.20%
Jupiter Income TrustUK Equity Income3.91%
UBS UK Equity IncomeUK Equity Income3.86%
6 more rows
4 Jul 2022

Is Vanguard Wellesley a good fund for retirees? ›

Vanguard Wellesley Income Fund Investor Shares (VWIAX)

Founded 40 years ago, the Vanguard Wellesley Income Fund is an actively managed mutual fund that's popular among retirees looking for a source of dependable income. Despite being actively managed, the fund charges a low expense ratio of just 16 basis points.

What is the most stable Vanguard fund? ›

10 Best Vanguard Funds for Long-Term Investing
  • Vanguard 500 Index (VFIAX) ...
  • Vanguard Total Bond Market Index (VBTLX) ...
  • Vanguard STAR (VGSTX) ...
  • Vanguard Total International Stock Market Index (VTIAX) ...
  • Vanguard Growth Index (VIGAX) ...
  • Vanguard Balanced Index (VBIAX) ...
  • Vanguard Mid-Cap Index (VIMAX) ...
  • Vanguard Target Retirement Funds.
21 Jan 2022

What is a good Vanguard portfolio? ›

What are the best performing Vanguard funds? Based on 10-year average annual returns, the top-performing Vanguard fund is the actively managed U.S. large-cap growth fund (VWUSX) at 20.74%. The passively managed large-cap growth index fund (VIGAX) comes in second with 19.32%.

Which Vanguard fund pays highest dividends? ›

Best Vanguard Funds for Dividends
  • Vanguard Utilities Index Adm (VUIAX) focuses on stocks in the utilities sector, which is highly sought for its high dividends. ...
  • Vanguard High Dividend Yield Index (VHYAX) is ideal for investors looking for income now with high yields for stocks.
5 May 2022

What do rich people invest in? ›

Instead, UHNWIs understand the value of physical assets, and they allocate their money accordingly. Ultra-wealthy individuals invest in such assets as private and commercial real estate, land, gold, and even artwork.

Where should seniors put their money? ›

Here are seven investment choices for retirees that have a good risk-return profile, especially when combined as part of a diversified investment portfolio:
  • 60/40 portfolio.
  • Bond ladders.
  • Certificates of deposit (CDs).
  • Options collar.
  • Low-volatility stocks.
  • Series I savings bonds.
  • Preferred stock.
20 Sept 2022

What is a good investment right now UK? ›

A stocks and shares ISA is likely to be most suitable. That is unless you will turn 55 within 30 years, in which case a pension might be a better tax wrapper for you. If you're unsure about the time horizon, you could invest in both a pension and a stocks and shares ISA.

Where can I invest my money UK? ›

  • Savings accounts.
  • Investment ISAs.
  • Private pensions.
  • Instant access saving accounts.
  • Cash ISAs.
  • SIPP pensions.
  • Fixed rate bonds.
  • Online stock trading platforms.

What is the best Vanguard fund for retirees? ›

Vanguard S&P 500 ETF (ticker: VOO)
  • These low-cost funds have solid performance histories. ...
  • Vanguard S&P 500 ETF (ticker: VOO) ...
  • Vanguard Total International Stock ETF (VXUS) ...
  • Vanguard Value ETF (VTV) ...
  • Vanguard Growth ETF (VUG) ...
  • Vanguard Total Stock Market ETF (VTI) ...
  • Vanguard Dividend Growth Fund (VDIGX)

Is Wellington better than Wellesley? ›

The primary difference between the funds is the amount of bonds held. Wellington is around 40% bonds while Wellesley is 60%. There has been discussions over which is the better fund for retirees who are making withdrawals from their portfolios.

Which mutual fund is best for retired person? ›

Best Mutual Funds in India for Senior Citizens
S.No.Top Mutual Funds for Senior Citizens
2.Axis BlueChip Fund Direct Plan-Growth
3.ICICI Prudential Ultra Short-Term Fund Direct-Growth
4.HDFC Short-Term Debt Fund Direct Plan-Growth
5.HDFC Retirement Savings Fund Equity Plan Direct-Growth
1 more row
6 Sept 2022

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