What happens to money in a closed mutual fund?

In a closed mutual fund, once the fund reaches its predetermined number of shares, it is closed to new investors. Existing investors can buy or sell shares on the secondary market, but the fund itself does not issue new shares or redeem existing ones directly. The value of the fund's shares fluctuates based on its net asset value (NAV) and market demand, which can lead to shares trading at a premium or discount to NAV. Over time, the fund may distribute dividends or capital gains to investors, depending on its performance and investment strategy.