NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Which of the following asset classes is generally considered to have the highest liquidity for an Indian retail investor?
Units of a liquid mutual fund scheme are the most liquid choice listed because they can be redeemed at NAV and the money is received quickly. Real estate and unlisted shares take time to sell, and a tax-saving deposit carries a lock-in.
- APhysical real estate
- BUnits of a liquid mutual fund schemeCorrect
- CUnlisted shares of a private company
- DA 5-year tax-saving bank deposit
Explanation
Liquid fund units can be redeemed with proceeds typically received within a short period, while real estate, unlisted shares and a tax-saving deposit with a lock-in are hard to convert to cash quickly.
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