Early termination of a long-term investment (more than 12 months duration) incurs a 25% termination fee against the value of the net investment value. This fee is applied if the investment is terminated within the first 12 months. Early termination of a short-term investment occurs before the conclusion of the investment and incurs a 25% termination fee against the value of the net investment value.
Why is this fee applied?
The early termination fee is applied as it causes the resources of the company to be diverted from investment activities and the day-to-day running of the business. The company needs to re-market your investment contribution, find the additional funds to pay-out your request, and reconsider its investment trajectory. All of which is a difficult and time consuming endeavor. In some circumstances, your investment withdrawal may holt the entire investment from being realised.
Before you consider terminating your investment early please understand that there are real consequences to your withdrawal.