About Company:
Carrying out all design an implementation activities in the field of software and hardware and financial investment , life work balance , as closed-ended, as opposed to unit trusts which are open-ended.
What’s meant by investment companies being closed-ended is that they have a fixed number of shares in issue at any one time. You invest in an investment company by buying the shares from another investor on the stock market. Similarly, when you want to sell your shares, you sell them to another investor.
In contrast, open-ended funds expand or contract depending on demand as investors move their money in and out of the fund. This means open-ended funds have to be managed in way so that they can give investors their money back at any time. This includes normally investing only in assets which can be sold very quickly and keeping part of the fund in cash to cover withdrawals.
Because investment companies are closed-ended, they don’t have to deal with these inflows and outflows. This allows them to invest in assets which can be hard to buy and sell like infrastructure, private companies or specialist property, with the potential to deliver better long-term returns or higher levels of income. It also enables investment company managers to make long-term investment decisions as they don’t have to buy and sell investments based on investors moving money in or out of the fund.
