The German government has approved new rules for open-ended real estate funds, which have been affected by volatile investor behavior, Reuters reports. From 2013, the cancellation period for investors will be 12 months and new investors will have to maintain a holding period of a minimum of two years.

So far, there had been no regulation on holding and cancellation periods, individual funds had set their own rules. As per the new regulations, investors can only withdraw $40,670 from the fund every six months. Foreign capital in a fund will not be allowed to exceed the 30% mark.

Click here for the story fromReuters.