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Glossary

Minimum holding period

A minimum holding period is the time set in an ELTIF's rules during which no redemptions are granted, even if the fund allows redemptions during its life.

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Short answerA minimum holding period is the time set in an ELTIF's rules during which no redemptions are granted, even if the fund allows redemptions during its life.

A minimum holding period is the time set in an ELTIF's rules during which investors cannot redeem their units, even if the fund allows redemptions during its life.

Why it matters

Under ELTIF 2.0, redemptions during the life of the fund are possible only if the rules permit them and several conditions are met. One of them is that no redemptions are granted before the end of the minimum holding period. This supports the long-term strategy, because the manager is not forced to sell assets in the early years while capital is being invested.

What to watch for

The minimum holding period is not the same as the life of the fund. After it ends, redemptions may still be capped and reduced pro rata if requests exceed the available amount. Check both dates and the redemption policy. See lock-up and life of the fund.

Primary sources

General information. Not investment advice or a suitability assessment.

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