Liquidity

Liquidity refers to how quickly and easily an asset or investment can be converted into cash without significantly affecting its value. Cash and listed shares are highly liquid, while property and private credit are less so.

In the Funding Income Trust, investor funds are allocated to property-secured loans, which may offer higher net returns but with lower liquidity compared to traditional savings or equities. Understanding the trade-off between risk vs return and liquidity is key to portfolio planning.

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