Depending on your investment strategy, you can create your investment fund closed or open. For example, if your foreign fund will invest in illiquid assets such as venture capital funds, private equity funds or real estate, which are usually illiquid long-term investments in nature, then it would be logical to choose a closed-end fund structure. Closed-end fund investors generally block their investments for a fixed long-term period, i.e. early repayments are generally not allowed and investors generally cannot call back their investments. An exception to this is a closed-end investment fund, which is listed on the stock exchange, where investors can sell their investments by selling the fund's shares on the secondary market. Closed-end investment funds, as a rule, collect a certain amount of capital, have a fixed number of offered shares (units) and do not issue new securities at the request of potential investors. In some cases, private closed-end funds, by themselves, may not be subject to registration with the regulatory body. However, they may be subject to anti-money laundering legislation, and the offering of fund units (for example, through a private placement or IPO) may be subject to certain securities laws, such as a prospectus requirement. The legal requirements vary greatly depending on the country in which the fund itself is located and the jurisdiction in which the fund's securities are sold, as well as how this is done. On the other hand, funds that are invested in liquid assets such as stocks or bonds listed on the stock exchange are usually structured as open-ended funds.
More info here - https://en.wikipedia.org/wiki/Investment_fund
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