Why Interval Funds are a Sound Investment Strategy


For the casual investor trying to figure out what type of investment makes the most sense can be a bit of a daunting task. There are many different options out there and sifting through all of them requires some patience and a significant time investment. One type of investment that’s become popular over the last few years is the interval fund. These have some clear advantages over other closed end funds and we’ll explain why we think so. If you’re looking for a secure investment with a high rate of return, investing in an interval fund may be exactly the type of investment you’re looking for.

Closed End Funds

Interval funds are closed end funds in the sense that you can’t invest in them and then pull out whenever the mood strikes. You must be willing to leave your money in the fund for a set period. The good news is there are always set intervals at which you have the option to cash out of the fund and these intervals are usually frequent – intervals typically range from one month to six months. This allows the fund manager the security of knowing they have the money to invest in the portfolio, but still provides the investor a fair degree of flexibility in managing their own portfolio.