this doesn't really apply to KiwiSaver funds though. They will almost certainly never experience a massive run because people cant withdraw until 65. Or, even if say one particular fund has a huge number of transfer requests outwards it would never be like a full scale run because most people don't take that active an interest in their KS.
Which is kind of a good thing about KiwiSaver for the average person who may well be inclined to liquidate their losses during a financial crisis scenario (if they are able to).
this doesn't really apply to KiwiSaver funds though. They will almost certainly never experience a massive run because people cant withdraw until 65. Or, even if say one particular fund has a huge number of transfer requests outwards it would never be like a full scale run because most people don't take that active an interest in their KS.
Which is kind of a good thing about KiwiSaver for the average person who may well be inclined to liquidate their losses during a financial crisis scenario (if they are able to).
My understanding is funds like Milford Growth Fund that are 'mirror' images of Kiwisaver growth fund with a higher proportion of unlisted investments then it could affect their returns?
My understanding is funds like Milford Growth Fund that are 'mirror' images of Kiwisaver growth fund with a higher proportion of unlisted investments then it could affect their returns?
well my point is that liquidity requirements are less likely to affect a KS fund.
Any non KS mutual fund will potentially have returns affected by liquidity in the usual way which is : being able to accept lower liquidity can potentially increase returns (as long as you're not forced to liquidate at a bad time).
I understand this is called a liquidity premium.
And the converse is true that if you require high liquidity your investments will likely have lower returns.
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