Original Source:- https://telegra.ph/Benefits-of-Liquidity-For-Private-Equity-Funds-03-18
In the share market .first you have to understand the knowledge of asset in the market. In the stock market how liquidity provides share and securities so, now what is the liquidity? Liquidity mean how to get money whenever need it. For eg. savings account, current account are liquid assets which can be easily converted into cash as and. Equity fund or stock fund, or equity fund is a fund that invests in stocks, also called equity securities. Equity funds can be unproportional with bond funds and money funds. Fund assets are typically mainly in stock, with some amount of cash, which include, as opposed to bonds, notes, or other securities etc.
Benefits of Liquidity For Private Equity Funds:- The benefits of liquidity for private equity fund are given below are as follow. The benefits of investor are in highly liquid assets are many.
Exchange traded investment:- Public, exchange-traded investments offer a high level of pricing transparency nd the flexibility to sell when necessary .
Short investment:- Investor do with a short investment, publicly traded investments are the most suitable investment options.
Purchase of investor:- They are typically open for all investors to purchase, regardless of net worth, and` minimums to invest are usually affordable for accredited and unaccredited investors alike.
Portfolio Management:- portfolio and assets are to main factor to sell the market sell to get the fund of the share and stock by business organisation
Analyse the actual assets :- is the opportunity to analyze the actual assets that the investor has purchased, versus making a blind commitment to a manager at the inception of the life of the fund, and then relying on that manager to make good investments.
Optimize Returns:- is an increase the allotment to get outperforming investment for equity fund.
Discount of liquidity;- It consistent with the variation in discounts in private equity pale being linked to the variation in liquidity provision in the market for Secondary Private Equity Liquidity fund.
growth of liquidity :- the growth of the liquidity is the depend upon the market for eg. venture, seed, expansion, late stage, preipoetc
Infrastructure of liquidity:- there are different type of infrastructure are given below which are benefit of equity fund Real Estate, Value Add, Income, Triple Net Lease Development Secondaries,Directs,FOF, Real Estate, Infrastructure, Natural Resources, Special Situations, Turnaround etc.
Liquidity Ratios:- Liquidating Current assets are which can be easily converted into cash. They are found on the balance sheet under current assets and listed in order of liquidity. Liquidity are which the Current assets include: Checking accounts and petty cash, Short-term investments , accounts receivable, inventory, prepaid expenses.
Final words:- if you want to asset for long term then then the amount of the liquidity is more take less tolerance . less liquid are the best suited for investors with a high risk tolerance, high required rate of return, and long time horizon etc.