What is used as the basis for admission and redemption in a fund?

The correct basis for admission and redemption in a fund is the plan rules. The plan rules outline the operational framework of a fund, detailing how shares are issued and redeemed. These rules specify the processes for both investors wanting to buy into the fund (admission) and those looking to sell their shares back to the fund (redemption). They provide clarity on the timing, pricing, and conditions under which transactions can occur.

Market performance, while it can influence valuations and investor sentiment, does not dictate the operational procedures for admission and redemption. Client preferences may affect individual investment decisions, but they do not establish the systematic rules governing the fund. Investment duration is relevant to investment strategy and tax considerations but does not play a role in the mechanics of how admission and redemption are processed within the fund. Hence, plan rules serve as the definitive guide for these transactions in a UITF context.