The Daily Telegraph - Your Money - - YOUR MONEY -

‘Hard close’: This is lit­er­ally clos­ing a fund to any new in­vest­ments. It is quite rare. Some funds that have “hard closed” will have a wait­ing list for in­vestors, so when some­one sells they can buy.

‘Soft close’: The fund is closed to new in­vestors, but ex­ist­ing in­vestors can con­tinue to add new money. Of­ten plat­forms or fund shops are con­sid­ered ex­ist­ing in­vestors, so their cus­tomers can still in­vest. Mr Bur­dett said: “The fund may still grow but in a con­trolled man­ner, but it can be very hard to main­tain a soft close.”

Some funds raise their charges to serve as a fur­ther de­ter­rent.

‘Soft soft close’: Of­ten used by larger groups, which don’t have a set pol­icy on clos­ing. It means cut­ting back any mar­ket­ing and ad­ver­tis­ing. In­vestors can still put money in the fund.

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