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When building your portfolio, concentrating all your investments in a single type of asset, such as stocks or bonds, can expose you to sudden market fluctuations. On the other hand, locking your money away for years in private equity or hedge funds may not feel practical, especially if life throws unexpected expenses your way.
So, how do you find a middle ground? Interval funds are a lesser-known option that blends access, growth potential, and flexibility.
Curious how they work and why more investors are turning to them?
An interval fund is a type of investment fund that lets you invest in assets not typically available through regular mutual funds. It's called an "interval" fund because you can only sell your shares back at specific times, not at any time. This setup provides fund managers with more flexibility to invest in long-term, less liquid assets, while still offering you some access to your funds.
This setup can differ from what you're used to, but if you're comfortable with the trade-offs, interval funds can open the door to more diversified opportunities.
With interval funds, you can invest in assets like private credit, commercial real estate, or infrastructure options that are usually hard for individual investors to access. These investments often do not move in tandem with the stock market, which can add stability to your portfolio.
This kind of stability is particularly significant, as alternative assets are projected to exceed $30 trillion globally by 2030. A sign that more investors are turning to this space for long-term growth. So if you’ve been interested in institutional-style investing, this could be your way in.
You don’t have to figure out complex investments on your own. Venture capital Interval funds are run by experienced fund managers who handle everything for you. They research, allocate, and monitor investments across different asset types.
This hands-on management gives you peace of mind, especially when dealing with less familiar investments. It’s like having a team of experts working behind the scenes to grow your money responsibly.
Because interval funds invest in private markets and long-term opportunities, they have the potential to offer higher returns than traditional mutual funds. While nothing is guaranteed, this space has seen rapid institutional interest, and assets under management in interval funds have grown by nearly 40% per year, reaching $80 billion over the past decade.
It’s a trade-off: You give up daily access to your money but gain exposure to investments with more significant growth potential. If you're comfortable waiting, the reward could be well worth it.
Unlike private equity or hedge funds, interval funds don’t completely lock you in since you still have opportunities to redeem your shares. Most of these funds offer redemption windows every quarter, typically allowing you to withdraw 5% to 25% of your investment during those periods. This setup provides flexibility while helping the fund remain stable. While it’s not as liquid as a mutual fund, you’re not stuck without access either.
With interval funds, your money is unavailable whenever you want because it can only be accessed during set redemption periods. That may feel restrictive, especially if you're accustomed to withdrawing funds at any time. It’s essential to plan so you're not caught needing funds you can’t reach. If you think you need immediate access to your money, this type of fund might be challenging.
Interval funds often come with higher management fees compared to regular mutual funds. That’s because they invest in complex assets and require more hands-on management. While these fees can be worth it if the returns are strong, they still take a bite out of your earnings. Therefore, examining the fee structure closely before investing is advisable.
These funds are built for long-term goals, not short-term gains. If you're someone who checks your portfolio daily or likes to move money around frequently, this approach may be too slow. But if you're good at letting your money grow steadily over time, the long-term focus can work in your favor. Think of it like planting a tree. It takes time, but the results can be rewarding.
Interval funds often appeal to those with some investing experience or who are willing to wait for things to unfold. If you're new to investing, the limited access and complex strategies might feel overwhelming.
But if you’re patient and understand the value of long-term growth, it could be a great addition to your portfolio. It’s all about knowing your comfort zone and investing style.
Champion Venture Partners (CVP) is a holding and asset management firm offering direct access to ownership in the evolving world of sports investing.
From cutting-edge recovery tech and performance wearables to sports real estate and pro team equity, CVP connects capital with game-changing innovation. We invest in the companies shaping the future of sports, health, and wellness — unlocking bold opportunities built for long-term success.
Through our platform, investors gain access to exclusive deals and expert insights across one of today’s most exciting alternative asset classes.
Take the next step in building your portfolio → Learn how CVP is redefining sports investing.
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