The financial system is at danger from open-ended mutual funds that give exposure to illiquid assets, according to the International Monetary Fund
The IMF stated that the less regularly traded segments of the $41 trillion
global open-ended business had a "significant potential vulnerability," particularly in choppy markets, in a blog post headlined How Illiquid Open-Ended Funds Can Amplify Shocks and Destabilize Asset Prices.
Investors can sell their shares every day at a price fixed at the conclusion of each trading session, but the global organisation warned that fund managers in sectors including corporate bonds
As a result, there is a liquidity mismatch since the price does not accurately represent the trading expenses related to the transaction.
some developing markets, and real estate could take several days to transfer their assets.