Investment FAQ – What does Capital Liquidity mean?

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Investment FAQ – What does Capital Liquidity mean?

Being liquid simply refers to the relative ability to readily turn one’s portfolio into cash.

Different asset classes have differing degrees of liquidity. Clearly being ‘liquid’ is an attribute, so it is often the case that less-liquid investments must deliver higher returns to compensate investors for the inability to access their capital as and when they want.

The ideal example of an illiquid investment is a direct property asset, but term deposits and some managed funds could be seen as illiquid.

 

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Disclaimer:
This information has been prepared by Primestock Securities Limited ABN 67 089 676 068, AFSL 239180 (“Prime”). Prime accepts no obligation to correct or update the information or opinions in it. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. It is recommended that you obtain financial, legal and taxation advice before making any financial investment decision. Prime is bound by the Australian Privacy Principles for the handling of personal information.

 

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By | 2017-06-16T15:16:14+11:00 December 7th, 2016|Investment Advice, Uncategorized|0 Comments

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Prime is an Integrated Wealth Management Firm for business owners and family groups. Prime’s goal is to become the Premier Partner to Accountants for Growth, Succession and Integrated Wealth Management and to deliver personalised advice to clients for a secure financial future.