Liquidity means that you may have shares in a mutual fund redeemed at any time and just need to wait a maximum of 7 banking days to gain access to your funds.
Safety of mutual fund are governed by the Investment Company Act whose implementing rules and regulations specify particular limits and constraints in the investment activities of all mutual funds. The securities and exchange commission (SEC) sees to it that all mutual funds comply with these statutory regulations. Moreover, mutual fund companies are regularly audited by an independent auditor. The assets of the mutual fund are held by a third-party custodian bank.
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