An unlisted fund is a type of investment fund that is not traded on a stock exchange. This means that investors cannot buy or sell units in the fund through a broker. Instead, investors must apply to invest in the fund directly with the fund manager.
Unlisted funds are often used to invest in illiquid assets, such as property. This is because illiquid assets are not easily traded on a stock exchange, so they are not as accessible to individual investors.
There are a number of different types of unlisted funds, including:
- Property funds: These funds invest in property, either directly or indirectly.
- Infrastructure funds: These funds invest in infrastructure assets, such as roads, bridges, and power plants.
- Venture capital funds: These funds invest in early-stage businesses.
Unlisted funds can be a good way for investors to access illiquid assets. However, they also come with some risks, such as the illiquidity of the assets and the potential for high fees.
Here are some examples of how unlisted fund can be used in Australian English in the context of property research:
- A property investor might choose to invest in an unlisted property fund to gain exposure to the property market.
- A fund manager might set up an unlisted property fund to raise capital from investors to invest in property.
- A financial advisor might recommend an unlisted property fund to a client who is looking for a way to invest in property without having to buy a property themselves.
Unlisted funds are an important concept to understand in the context of property research. By understanding the risks and rewards of unlisted funds, investors can make informed decisions about their property investments.
Here are some additional terms that you might come across in the context of unlisted funds:
- Illiquid asset: An asset that is difficult to sell quickly or easily.
- Fees: The charges that investors pay to invest in a fund.
- Liquidity: The ease with which an asset can be bought or sold.