Hi
Someone knows what should be the precautionary storage for mutual funds?
if you mean a custodian, the law will vary by jurisdictionHi
Someone knows what should be the precautionary storage for mutual funds?
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.I mean , If an investment fund wants to set aside a precautionary amount to avoid liquidity risk, how much does it cost?
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?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.I mean , If an investment fund wants to set aside a precautionary amount to avoid liquidity risk, how much does it cost?
It would be better to post your questions in the student forum.