What is an Interval fund?

INTERVAL FUNDS

There is another category of funds whose characteristics fall between open ended and close ended funds and these are known as interval funds. These funds are not completely close ended or completely open ended in the sense that they are not of a fixed duration and they do allow investors to make purchases once the initial offer period is over but they will not be available for purchase and sale everyday. There will be a specific time period like a few days every three months or every six months when investors can buy and/or sell these units back to the funds. Thus they provide liquidity without compromising on the restricted nature of the fund.