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samira76
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Posts: 17
Joined: May 4th, 2018, 9:51 am

mutual founds

May 4th, 2018, 10:16 am

Hi
Someone knows what should be the precautionary storage for mutual funds?
 
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ppauper
Posts: 11729
Joined: November 15th, 2001, 1:29 pm

Re: mutual founds

May 4th, 2018, 10:29 am

Hi
Someone knows what should be the precautionary storage for mutual funds?
if you mean a custodian, the law will vary by jurisdiction
 
samira76
Topic Author
Posts: 17
Joined: May 4th, 2018, 9:51 am

Re: mutual founds

May 4th, 2018, 10:41 am

I mean , If an investment fund wants to set aside a precautionary amount to avoid liquidity risk, how much does it cost?
 
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bearish
Posts: 5186
Joined: February 3rd, 2011, 2:19 pm

Re: mutual founds

May 4th, 2018, 4:45 pm

I mean , If an investment fund wants to set aside a precautionary amount to avoid liquidity risk, how much does it cost?
It will depend heavily on how liquid the fund’s investments are and how volatile its flows are. There is an enormous difference between the liquidity of US treasuries and bank loans, to take two extremes. It is also common to have a credit line that can be drawn in case of unexpected outflows, often shared across a family of funds.

It would be better to post your questions in the student forum.
 
samira76
Topic Author
Posts: 17
Joined: May 4th, 2018, 9:51 am

Re: mutual founds

May 4th, 2018, 4:56 pm

I mean , If an investment fund wants to set aside a precautionary amount to avoid liquidity risk, how much does it cost?
It will depend heavily on how liquid the fund’s investments are and how volatile its flows are. There is an enormous difference between the liquidity of US treasuries and bank loans, to take two extremes. It is also common to have a credit line that can be drawn in case of unexpected outflows, often shared across a family of funds.

It would be better to post your questions in the student forum.
thank you, I would like to have a study on the risks of investment funds. These risks include liquidity risk and the market. What are the risks associated with open_end  funds? And how they reduce these risks?