Closed end funds lose sheen on LTCG tax With the tax disadvantage almost gone, more investors may be willing to venture into international funds to diversify their portfolios Closedend funds have always been a less attractive investment category than openend ones.The imposition of the longterm capital gains tax (LTCG) of 10 per cent is set to reduce their attractiveness further.Earlier, many retail investors avoided international funds because of their inferior tax treatment visà vis domestic equity funds. With the tax arbitrage almost gone, most of them can venture into these funds now.In recent times, the number of new closedend funds being launched by fund houses has far exceeded openend funds.When marketing these funds, mutual fund houses highlight two points.One, exiting these funds in the middle of their tenure is difficult. Though they are listed on the exchanges, these have to be sold atasteep discount.This, fund houses say, deters investors who lack the will power to