Are Interval Funds Open-Ended? | Liquidity Rules That Apply

No, interval funds are closed-end funds that sell shares at NAV and buy them back only through scheduled repurchase offers.

“Open-ended” sounds simple: you put money in, you take money out, and the fund expands or shrinks around you. Interval funds don’t work that way, even if the purchase process can feel similar to a mutual fund.

If you’re trying to figure out what you can sell, when you can sell, and what happens if everyone wants out at once, you’re in the right place. This guide breaks the structure down in plain terms, then gives you a clean checklist you can use before you place a trade.

Are Interval Funds Open-Ended? How The Structure Works

Interval funds sit in an in-between spot that trips people up. They’re registered closed-end funds, yet many are sold continuously, often at net asset value (NAV) like an open-end mutual fund. The “closed-end” part shows up in the exit door, not the entry door.

With an open-end fund, you can typically redeem shares each business day at NAV. With a traditional exchange-listed closed-end fund, you usually sell on an exchange to another investor, and the market price can swing above or below NAV.

An interval fund skips the exchange. You buy shares from the fund, and later you can ask the fund to repurchase shares during set windows. Those windows follow rules that cap how much the fund will buy back each time.

How Interval Fund Repurchase Offers Work

The defining feature is the periodic repurchase offer. Under SEC Rule 23c-3 (17 CFR 270.23c-3), an interval fund sets a repurchase schedule, then makes offers on that schedule to buy back a slice of its shares in circulation.

Most repurchase programs show up quarterly, though the rule also contemplates three-, six-, or twelve-month intervals. Each offer has a deadline to submit your request, a pricing date tied to NAV, and a payment deadline that follows.

How Much You Can Sell In One Window

Rule 23c-3 sets a floor and ceiling for the size of each offer: the fund must offer to repurchase no less than 5% and no more than 25% of its shares in circulation at the repurchase request deadline. The board sets the offer amount for each window.

Investor-facing regulators also spell out the practical effect: you may be able to request more shares than the fund will accept, and then the fund buys back only part of what you tender. The SEC publishes a plain-language interval fund explainer on Investor.gov.

What Happens When Too Many People Tender

If repurchase requests exceed the offer amount, the fund generally accepts tenders on a pro rata basis. That means you can submit a request to sell 100% of your position and still get filled for less than that.

FINRA calls this out as a practical constraint on access to cash and notes the common 5%–25% range and typical quarterly cadence in its investor guidance.

Why The Fund Uses Windows Instead Of Daily Redemptions

Interval funds often hold assets that don’t trade in deep, fast public markets every day. The repurchase window gives the manager time to plan cash flows and, when needed, sell holdings in an orderly way. In exchange, shareholders accept that selling is scheduled, capped, and sometimes partially filled.

Where Interval Funds Sit Between Mutual Funds And Closed-End Funds

Two things can be true at once: interval funds can feel “open” when you buy, and “closed” when you try to exit. They can also publish NAV regularly and sell shares at NAV while still being closed-end under the law.

The table below puts the structure side by side with the version most people know: an open-end mutual fund. Use it to translate marketing language into mechanics.

Why The “Open” Part Can Look Convincing

Many interval funds accept purchases through broker platforms with a steady offering. You may see an order ticket that looks like a mutual fund trade, plus periodic NAV updates. That surface-level similarity is where the label confusion starts.

The deal-breaker is redemption timing. Open-end funds are built around daily cash flows from shareholders. Interval funds are built around scheduled tenders that the fund can plan for. Once you separate “how you buy” from “how you sell,” the structure snaps into focus.

One more clue: interval funds can limit how much any one repurchase window absorbs. That cap can help a manager hold assets that take time to sell, yet it shifts timing risk onto shareholders. If you’re buying, treat the repurchase policy like a contract term, not a footnote. Read the schedule, the cap, and the oversubscription rules before you treat the position as spendable money.

If you want the source text, start with the SEC Rule 23c-3 text, then read the Investor.gov interval fund explainer and FINRA’s interval fund checklist for the investor-facing view.

Feature	Open-End Mutual Fund	Interval Fund
Legal structure	Open-end investment company	Closed-end investment company using Rule 23c-3
How shares are issued	Creates and redeems shares daily based on flows	Often sells shares continuously; does not redeem daily
How you typically exit	Daily redemption with the fund at NAV	Submit tenders during scheduled repurchase offers at NAV
Timing of liquidity	Each business day	Set windows (often quarterly; also possible at 3, 6, or 12 months)
Limit on redemptions	No preset cap per day (fund manages liquidity under its rules)	Each offer is capped (5%–25% of shares in circulation per offer)
What if requests exceed capacity	Fund still processes daily redemptions, subject to its policies	Requests are generally accepted pro rata, so you may get a partial fill
How price is set	NAV calculated for the transaction date	NAV on the repurchase pricing date for that window
Exchange trading	Not exchange-traded	Not exchange-traded

What Liquidity Feels Like In Real Life

“Limited liquidity” can sound abstract. It turns into real trade-offs the moment you need cash on a timeline you don’t control. Thinking through a few common situations helps you decide if the structure fits your plan.

If You Need Cash On A Specific Date

If you’re saving for a known bill date, the repurchase calendar is the first thing to read. You can only submit tenders during each offer window, and the fund can accept only up to its offer limit. If you miss the deadline, you wait until the next window.

Many funds publish a schedule with main dates. The industry’s standard timeline is summarized by the Investment Company Institute’s explainer on the Interval Fund Repurchase Timeline, which maps out the notice period, request deadline, pricing date, and payment deadline.

If You Might Need An Emergency Exit

Interval funds are not built for emergency cash. You can submit a tender during the next window, then wait for pricing and payment. On top of that, you can still get a partial fill if the offer is oversubscribed.

If your plan needs “cash in two days” reliability, an interval fund is usually the wrong tool. If your plan can live with scheduled liquidity, it can fit as a sleeve inside a wider portfolio that has liquid holdings on hand.

If You Want To Rebalance Often

Frequent rebalancing depends on fast selling. Interval funds slow that down. You can add money as offered by the fund and your platform, yet trimming is tied to the next tender window. That makes interval funds better suited to long-hold allocations that you don’t plan to trade around.

Fees, Share Classes, And Friction Costs

The structure isn’t the only thing that affects your outcome. Costs do too, and interval funds can stack several layers. You may see sales charges, distribution fees, management fees, and fund operating expenses, depending on share class.

Also check the tender mechanics for any repurchase fee deducted from proceeds. Rule 23c-3 allows a repurchase fee under stated limits and conditions, which is another reason to read the prospectus section that describes repurchases and fees.

Where To Find The Numbers Fast

Start with the prospectus fee table and the section describing repurchase offers. Then scan the statement of additional information if you want more on policies and risk controls. If you’re buying through a broker-dealer platform, confirm which share classes you can access and what compensation arrangements apply.

Asset Mix And Valuation: Why It Ties Back To Liquidity

Many interval funds hold assets that are less liquid than public stocks and bonds. That can include private credit, real estate-related exposures, or other holdings that don’t trade on an exchange each minute. That mix is part of the point for many buyers.

It also puts more weight on how the fund values its holdings and how it plans for repurchases. The fund still calculates NAV, but the way a holding is valued may rely on models or appraisals instead of last-trade prices. That’s normal in some asset classes, yet it’s a reason to read the valuation section and to understand what drives NAV moves.

Due Diligence Questions Before You Buy

If you only keep one idea, keep the calendar and the cap. After that, the decision comes down to fit: the fund’s strategy, the costs you pay, and how the repurchase process behaves when lots of shareholders tender.

This checklist is built to catch the details that most often surprise buyers.

Question To Ask	Why It Matters	What To Look For
How often are repurchase offers made?	Sets your earliest exit window	Quarterly, semiannual, or annual schedule; published dates and deadlines
What is the repurchase offer amount?	Caps what the fund will buy back each window	Board-set percentage within the rule’s 5%–25% range
How does the fund handle oversubscription?	Determines whether you get a full or partial fill	Pro rata acceptance language; any priority policies stated in documents
Is there a repurchase fee or sales charge?	Direct drag on proceeds and total return	Fee caps disclosed; share class differences; timing rules for any charges
What does the fund hold, and how is it valued?	Shapes risk, NAV volatility, and liquidity planning	Plain list of asset types; valuation methods; use of third-party pricing or appraisals
What cash planning does it use for tenders?	Signals how smooth tenders may run	Policies describing cash, short-term holdings, credit lines, and sale plans

Common Misreads That Lead To Bad Surprises

Most confusion comes from mixing up “continuous offering” with “daily redemption.” A fund can keep selling shares and still limit buybacks to scheduled windows. Marketing materials may stress access to alternatives or income and mention repurchases, yet the lived experience shows up when you try to sell.

Another misread is assuming “at NAV” means “liquid enough to sell anytime.” NAV pricing is a pricing method, not a liquidity promise. You can get NAV pricing on a tender date and still have to wait for the next offer window, still face a cap, and still get filled for less than you asked for.

So, Are Interval Funds Open-Ended Or Not?

In regulatory terms, interval funds are closed-end funds that follow Rule 23c-3 to make periodic repurchase offers. In plain terms, they are not open-ended in the way mutual fund investors mean it, because you can’t redeem shares each business day.

If you want a clean mental label, try this: “closed-end fund with scheduled buybacks.” That description matches what drives your experience: scheduled windows, capped tender size, and pro rata fills during heavy demand.