Commentary on Sections Overview Section 356: Meaning of “mutual fund”
646.This section defines “mutual fund”. It is based on sections 40B and 42A(2) of FA 2008.
647.To qualify as a mutual fund, arrangements must meet conditions A, B and C.
648.Condition C requires that an investor in the arrangements would expect to be able to realise the investment on a basis calculated entirely, or almost entirely, by reference to net asset value (“NAV”) or by reference to an index of any description.