Open-end investment funds pool money by means of issuing investment units and redeem them at the request of fund members. Open-end funds invest in liquid marketable securities and investors can invest or withdraw their money on a daily basis.
A closed-ended fund pools money in a public offering of shares. Once the public offering is closed, investors who bought the shares of the fund may trade them on the secondary market at their market price which might be lower or higher than the net asset value of the fund. The fund’s management company must have the shares of the fund admitted to the regulated market within 3 days of the day of receipt of the decision on their issuance. In addition to securities open-end funds invest in, closed-end funds may invest in real estate and in companies not traded on the regulated market and therefore the might entail more risk than open-end funds.
Private funds are organized as limited liability companies and as such are not limited regarding their investment strategies. These funds are for experienced investors, the minimum investment amounts to EUR 50,000.
A closed-ended fund pools money in a public offering of shares. Once the public offering is closed, investors who bought the shares of the fund may trade them on the secondary market at their market price which might be lower or higher than the net asset value of the fund. The fund’s management company must have the shares of the fund admitted to the regulated market within 3 days of the day of receipt of the decision on their issuance. In addition to securities open-end funds invest in, closed-end funds may invest in real estate and in companies not traded on the regulated market and therefore the might entail more risk than open-end funds.
Private funds are organized as limited liability companies and as such are not limited regarding their investment strategies. These funds are for experienced investors, the minimum investment amounts to EUR 50,000.