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Types of mutual funds

In dependence of redemption periods there open-ended, interval and close-ended mutual funds:

Open-ended mutual funds – mutual funds in which asset management company takes responsibilities to redeem mutual funds shares on investor’s demand at any working day with the price that corresponds to the net asset value on the day of investor’s application divided calculated for one mutual funds share (1 equity or 1 investment certificate).

Interval mutual funds – mutual funds in which asset management company provides redemption only at some intervals defined by the Prospectus at a price which coincides with the net asset value at a day of investor’s application calculated for 1 share (1 equity or 1 investment certificate).

Close-ended mutual funds – mutual funds which are created for a definite period of time. Asset management company of such fund type provides redemption of it’s shares only after the termination of fund’s activity period and at a price that corresponds with the net asset value for the moment of funds’ liquidation calculated for 1 share (1 equity or 1 investment certificate).

By the degree of state regulation mutual funds are divided for diversified and non-diversified:

Diversified mutual funds – funds that correspond to legal standards in relation to the structure of it’s assets, meaning that investments are being made into various financial instruments in proportion defined by Ukrainian legislation.

Non-diversified mutual funds– funds which are not restricted by law regulations, that influence on diversified mutual funds.