If some wants to invest in a fund the fund will sell them the share so they're always dealing with the fund itself in a closed end fund once the fund is created it's share pool is fixed and if someone wants to buy or sell a share it happens in the secondary market so they're buying and selling from each other they're not dealing with the actual fund manager

The person who runs it nicely describes it as

And we covered that a couple of videos ago.

Grandfather, the clinic, the foundation,

That's what I'm going to talk about here

Let's continue with the story of

So what happens?

The advantage is this fund manager doesn't have to keep cash around in case the share holders want to redeem

Take a look at these.

But let's say that that's not on the table anymore either.

But that probably had you asking

And you often see that problem when it comes down to those long lists of all these funds.

So, in the first video,

And a closed end fund

But I am seeing in the major funders, in CARE, Rockefeller,

If you need to buy a house, or if you owe money to somebody so you want to get the value of your share back and the answer with a closed end fund is that you would then go sell your share to someone else so this right here you can trade it

So this program has split into an NGO foundation, a Fab Foundation to support the scaling, a micro VC fund.

And it was that that whole philosophy that encouraged me to start my current endeavor called Acumen Fund, which is trying to build some mini blueprints for how we might do that in water, health and housing in Pakistan, India, Kenya, Tanzania and Egypt.

In the open ended fund we saw that the manager has to keep some cash around in case one of these investors wants their money back here the closed end fund he knows that no one can get their money back right here so he or she can invest as they see fit

There were big health innovation funds

The company had to raise more money.

Every single Harvard employee is now automatically enrolled in a lifecycle fund.

So the big difference open ended fund when an investor wants their money back they have to deal with the fund itself the fund will buy back their share

I was wondering why she didn't do anything after the wedding.

The disadvantage from the fund manager here is it's much less flexible in terms of growing or shrinking the fund

And so, it was really those lessons that made me decide to build Acumen Fund about six years ago.

But you're like, no I want to sell them.

Now we'll have 2 billion shares.

So he is able to raise 2000

JiHoo's?

If this is an open ended fund, what is a closed ended fund or do they even exist?

This is just a stressful situation.

But it's managed by Pete Inc. and we called it an open ended fund because at any time one of the people who owned a share or unit in the fund can redeem it back from the fund that Pete or the management company would say

Or enough of a loan to pay off that loan.

Lehman Brothers went into bankruptcy.

So from the public

Let's do that.

Those can only take funds from certain types of sophisticated investors. and what happens in Pete's fund, and this is going to be an open ended mutual fund that we're showing here, and most mutual funds are like that.

I hope you'll challenge it with courage

Closed end funds and closed end funds on some level are a little bit simpler

And because there was non of this kind of back and forth between the fund managers or whoever was a kind of doing the operations of the fund and the investors, they didn't have to put cash aside or they didn't have to have kind of all of the overhead in dealing with the investors.

I am sorry to hear you say that.

We actually showed how this bank got quote unquote bailed out.

And you say, who wants to buy my CDOs?

And maybe in 10 years they might come back.