Morningstar’s Guide to Interval Funds  

Evaluating the strengths and weaknesses of interval funds 

The past decade has seen a remarkable rise in interval funds, with assets under management growing by nearly 40% annually, now exceeding USD 80 billion. These funds provide investors with unique access to both public and private markets, and they are becoming particularly appealing to asset managers because their investment strategies cannot be replicated by passive options.

But a critical question remains: should financial advisors recommend these investments to their clients? Interval funds blend features of open- and closed-end fund structures, resulting in distinct strengths and weaknesses.

In this comprehensive guide, we explore practical applications of interval funds and illuminate the benefits and challenges associated with these specialized investment strategies.