What means Fund types?

Funds can be categorized broadly into two types: open-end and closed-end funds.

Open-end funds can issue new shares quite easily, making them suitable for situations where the assets of the fund are expected to grow. The value of these shares is determined based on the net asset value or adjusted net asset value.

Closed-end funds can only increase their share number through new issuances. These funds are listed on the stock exchange and their prices depend on market demand and supply, which can make the price either above or below the net asset value.