A Public Fund refers to a mutual fund, which offers any shares it issues for subscription or purchase to any interested member of the general public. All public funds registered must publish a prospectus filed with the Financial Services Authority. There are no capital adequacy requirements or minimum subscription limits placed on public funds. Also, they must maintain accounting records and financial statements.
Private or accredited fund is the other category of license recognized by this Act. A private or accredited fund is a mutual fund that either has no more than fifty investors or issues shares on a private basis. An accredited fund issues shares only to accredited investors, with an initial investment of no less than USD 25,000. An accredited investor is one, who has a net worth in excess of USD one million.