NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Which of the following asset classes is generally considered to offer the highest liquidity for an individual investor?
Units of a liquid mutual fund scheme offer the highest liquidity among these choices because they can be redeemed at NAV with proceeds typically received within a day. Real estate, unlisted shares and jewellery take longer to sell and may involve significant discounts or deductions.
- AReal estate
- BPhysical gold jewellery
- CUnits of a liquid mutual fund schemeCorrect
- DUnlisted shares
Explanation
Liquid fund units can be redeemed with proceeds typically credited quickly, usually the next working day. Real estate and unlisted shares take long to sell, and jewellery sales involve deductions.
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