Closed end fund, investment certificate
Unlike an open end fund, a closed end fund issues a certain number of investment certificates, i. e. securities admitted to public trading.
These certificates cannot be purchased by the fund but are subject to secondary trading, which means that they can be bought and sold at any time at the current market price.
This structure ensures that the value of the assets it manages does not change as a result of new entrants or redemption of participation units.
As in an open ended specialised fund, a closed end investment fund is governed by an investor board as a supervisory body.
A closed end fund has quite liberal investment opportunities – it can invest funds (in appropriate proportions) in the following negotiable instruments: securities, receivables, shares in limited liability companies, currencies and derivatives.
Mixed investment fund
As the name suggests, the mixed fund combines certain features of an open end and closed end fund. It issues investment certificates, which can however be sold to the fund at the dates specified in the statutes (at least once a year).
A mixed fund may invest assets in securities (except derivative instruments) unless such investment opportunities are not provided for in the statutes, short-term cash receivables, shares in limited liability companies and currencies.