HANetf puts focus on liquidity challenge facing mutual funds

Jonathan Boyd
clock • 2 min read

The next downturn in markets will highlight the possibility that mutual funds suffer a far greater liquidity crisis than ETFs, according to HANetf founder Hector McNeil. This is because of the structure of mutual funds along with lack of clarity in pricing, and the gating threat, McNeil suggests. Rather than worry about ETFs excacerbating any sell-off in a serious market downturn, investors should be concerned about the challenges they may face from the mutual fund product type. McNeil said: "One only has to look back to events so far this year, or when there was a run on property ...

Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.

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