How important is liquidity in investment? Only those options which have liquidity are considered better for investment. Therefore, before investing, you must check whether you can use the money in the product in which you are investing, if needed?
If understood in simple words, liquidity means that you have the freedom to invest whenever you want and to exit it whenever you want without any hassle. For this, exchange traded fund i.e. ETF is a good option. ETFs are a type of mutual funds that usually track an index or sector of the stock market. Since stocks are traded, you can buy or sell ETF units at any time through a stock broker during market trading. Demat and trading account is necessary to invest in an ETF. Liquidity is also a measure to know how good an investment is.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.) Liquidity is an important factor for investing in mutual funds. Why is liquidity important from an investment point of view? How is the liquidity in the Exchange Traded Fund? Let’s know Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
