Capital Group’s plans to partner with KKR in launching two interval funds in 2025 is only the latest sign of interest from two well-known asset managers in this increasingly popular structure. To help investors navigate interval funds’ strengths and weaknesses while considering their role in a portfolio, Morningstar manager research analysts recently published an extensive guide to interval funds. This column draws from that report to help investors make informed decisions about interval funds.

Interval funds combine features of both open- and closed-end fund structures, offering regular investors and advisers access to assets and strategies that would otherwise be out of their reach. The currently booming private credit market is one example.

In fact, both bond and equity issuance has been moving from the public markets into the private markets, and so the opportunity set for public-only strategies (most mutual funds and exchange-traded funds) is not meaningfully