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Glossary

Life of the fund

The life of the fund is the period up to the end date set in the ELTIF's rules. Investors cannot request redemption before it ends unless the rules allow redemptions during the life under strict conditions.

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Short answerThe life of the fund is the period up to the end date set in the ELTIF's rules. Investors cannot request redemption before it ends unless the rules allow redemptions during the life under strict conditions.

The life of the fund is the period from launch to the end date set out in the ELTIF's rules, after which the fund winds down and investors can request redemption.

Why it matters

Under the ELTIF Regulation, investors cannot request redemption before the end of the life, unless the rules allow redemptions during the life under strict conditions. The rules must state the end date clearly and may allow a temporary extension. The life must be compatible with the long-term nature of the fund and the life cycles of its assets. If the life exceeds 10 years, retail investors must receive a written alert that the product may not suit everyone.

What to watch for

Find the end date and the extension conditions in the documents and compare them with when you may need the money. See ELTIF liquidity and minimum holding period.

Primary sources

General information. Not investment advice or a suitability assessment.

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