Fund Operations

Redemption Gate

Definition

What is Redemption Gate?

A rule limiting how much investors may redeem from a fund during a period.

Example in practice

A fund caps daily redemptions at 10% of NAV during severe market stress.

Keep learning

The deadline by which a valid fund instruction must be received for a particular dealing day.

The specified time at which a fund values its assets and calculates dealing prices.

A fund-pricing method under which orders receive a price calculated after the instruction is accepted.

A debt security through which an investor lends money to an issuer in return for promised payments.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.