What is Liquidity in Mutual Funds ?
premnath
(Student Others)
(42 Points)
Replied 19 October 2012
Liquidity - Open-ended mutual funds are priced daily and are always willing to buy back units from investors. This mean that investors can sell their holdings in mutual fund investments anytime without worrying about finding a buyer at the right price. In the case of other investment avenues such as stocks and bonds, buyers are not necessarily available and therefore these investment avenues are less liquid compared to open-ended schemes of mutual funds. All this and so much knowledge on investing without risk can be had from The Reliance Mutual Fund’s advisor.
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