This can reduce your total average cost per unit and improve your overall return. Gold bullion, for instance, is highly liquid. It's easy to sell a gold bar for exactly what it's worth. In liquid investments include such items as real estate, thinly-traded stocks and fine art. You may have difficulty finding a buyer to pay the price you want for these types of investments.
Mutual funds are one of the simplest solutions to lack of liquidity.
Fund units can usually be redeemed at their fair market value within two business days. Real estate fund units are sometimes less liquid, so it may take longer for your redemption to be processed. But they are still more liquid than real property itself. This is arguably the most serious risk to your financial security. Your best defense is to maintain an equity component within your portfolio.