What is investment portfolio liquidity and why is it important?

investment portfolio liquidity


While it is a good idea to hold illiquid assets depending on your investment goals and risk appetite, it’s vital that some of your wealth is in assets that you can sell quickly if needed or provide a consistent flow on income.

Given today’s economic climate we look at what is liquidity and why it is important in a portfolio. We also look at ways to balance liquid and less liquid assets in your portfolio based on your liquidity needs.

Learn in this guide:

  • What is liquidity? Why is liquidity important?
  • Balancing liquid and less liquid investments in a portfolio
  • Illiquid investment examples vs liquid investment examples


Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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