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 a retail investor in India?
Units of an open-ended liquid mutual fund scheme are the most liquid here because they can be redeemed with the fund house at NAV and the money is received quickly. Real estate, jewellery and unlisted shares depend on finding buyers and may sell at a discount.
- ADirect residential real estate
- BUnits of an open-ended liquid mutual fund schemeCorrect
- CPhysical gold jewellery with making charges
- DUnlisted shares of a private company
Explanation
Open-ended liquid fund units can be redeemed at NAV with quick settlement, usually within a day. Real estate, jewellery and unlisted shares need a buyer, negotiation and time, and may fetch a discount.
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