A mutual fund or fund means a Labuan company, a corporation incorporated under the laws of any recognised country or jurisdiction, a partnership, a protected cell company, a foundation or a unit trust which:
- collects and pools funds for the purpose of collective investment with the aim of spreading investment risk; and
- issues interests in a mutual fund which entitles the holder to redeem his investments that is agreed upon by the parties and receives an amount computed by reference to the value of a proportionate interest in the whole or part of the net assets of the aforesaid types of entities, as the case may be,
and includes an umbrella fund whose interests in a mutual fund or unit are split into a number of different class funds or sub funds and whose participants are entitled to exchange rights in one part for rights in another.
Two types of funds are prescribed under the Labuan Financial Services and Securities Act 2010, namely private funds and public funds.