In which type of pooled trust fund is participation or redemption typically allowed frequently?

The open-ended pooled trust fund is designed to allow investors to participate and redeem their shares frequently. This type of fund does not have a fixed number of shares; instead, it continuously issues and redeems shares based on demand. Investors can enter or exit the fund without significant restrictions, which provides them with liquidity and flexibility.

This structure is particularly attractive for investors who prefer the option to redeem their investments at regular intervals, making it suitable for those who may need access to their capital more frequently. The open-ended nature responds directly to the investor’s demand, allowing for more dynamic management of the fund's assets in accordance with investor inflows and outflows.

In contrast, closed-ended funds have a fixed number of shares and typically do not allow for frequent redemption, as shares are traded on the stock exchanges. Private equity funds often have long lock-in periods and are not designed for frequent trading, as they target investments in private companies or ventures that require a longer time horizon. Hedge funds may offer varying liquidity terms, but they generally have lock-up periods and infrequent redemption opportunities. Therefore, the frequency of participation or redemption is a key characteristic that distinguishes open-ended pooled trust funds from these other types of funds.