For Investment Units that are categorized by structure, they can further be grouped into two main categories:

• Open-end Investment Units
• Closed-end Investment Units
  

Open-end Investment Units
An Open-end Fund offers shares on an unlimited and continuous basis. These funds can be purchased and sold directly from the Asset Management Company at the net asset value (NAV). In the event that a purchase is made, the Asset Management Company may use the money to issue new shares and/or purchase more securities for the portfolio. In the event that a sale or redemption is made, the Asset Management Company may use new investor money or liquidate existing portfolio securities to pay for the redemption.

Closed-end Investment Units
A Closed-end Fund issues a set number of shares (in the form of common stock, preferred stock, or bonds) through a one-time share offering. After the point of issuance, investors can buy or sell the shares on an exchange or over-the-counter market. Unlike Open-end Funds which rely on the net asset value to determine price, a Closed-end Fund relies on the laws of supply and demand to determine price which can trade above (premium) or below (discount) the NAV.

Comparison between Open-end and Closed-end Investment Units