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Thanks! Interesting answer. With respect to (1), wouldn't a mutual fund have access to the same sorts of low liquidity opportunities? That seems like a possibl

by neilc 16y ago

Thanks! Interesting answer. With respect to (1), wouldn't a mutual fund have access to the same sorts of low liquidity opportunities? That seems like a possible reason to prefer a managed fund over an index fund, despite the higher fees.

anamax 16y ago
> wouldn't a mutual fund have access to the same sorts of low liquidity opportunities? It depends on the fund's rules and mutual fund regulations. Also, non-liquid assets make it hard to maintain the target allocation when the fund is attracting lots of new money or folks are bailing.
- neilc 16y ago
  Fair enough -- presumably both of those are simplified if you s/mutual fund/hedge fund/.
  - anamax 16y ago
    > presumably both of those are simplified if you s/mutual fund/hedge fund/. Possibly. I don't know the rules for hedge funds, the rules specific to other vehicles that are open to non-accredited investors, or the rules that apply to all such vehicles.