We continue to believe that mutual funds run by such shareholder-friendly firms represent worthwhile investment opportunities for most investors.

For investors who aren't sure about how to select a fund appropriate for their time horizon, these funds really make it simple for you to do that and to get a lot of diversification in a single package. They help investors with the two things they have the most problems with. The first is arriving at an appropriate asset allocation, and the second is maturing that asset allocation as you approach your goal.

It's a point I'd make regarding any mutual fund, but it's particularly important in a mutual fund type where you expect a low absolute return. If you're paying 1 percent in expenses and you're earning just 3 percent, you're forking over literally a third of your return.

Most investors still believe the influx of cash, or the influx of external funds, will continue.

Leverage has been a profitable trade in the past and it has allowed many closed-end funds to deliver very compelling yields, but the risk is your total return could suffer. Leverage can cut both ways; it can magnify your gains but it can also accentuate your losses. ... On the flip side, if you are delving into these more unusual strategies, one could argue the closed-end format lends itself to them pretty well, because your manager is not having to redeem shares everyday.

I would say it's a dueling trend that retail mutual fund companies are starting hedge fund like vehicles to retain that talent. That is a weapon in a fund company's arsenal.