Portfolio Liquidity & Its Significance by Harshad Patwardhan, CIO – Equities | Edelweiss MF
In this video, Harshad Patwardhan, CIO - Equities, shares his opinion on portfolio liquidity and why is it so important, especially in the current scenario. The following points are covered in the video: What is Liquidity? In this case, portfolio liquidity is being discussed, which means the ability of an investment manager to meet redemption in an orderly manner, along with no compromise on the interests of investors who are not redeeming. Root cause of liquidity related accidents Liquidity related accidents have been happening across all the markets. At the crux of these accidents is a difference between the liquidity available to the investors in a pooled fund & the underlying liquidity of the asset class. How things could go wrong if liquidity is overlooked? If liquidity is overlooked, the trouble may start with adverse circumstances. The underlying liquidity of the asset class may start to dry up. If the proportion of such securities is high, the portfolio performance starts to deteriorate. How we think about liquidity As far as our portfolios are concerned, we think about liquidity at the start itself, and not as an afterthought. For the long-term interests of the investors, it is important to balance the performance & liquidity. Our advice on liquidity Liquidity measure should be made an integral part of the checklist on the basis of which you pick a fund. 0:00 - Intro 1:15 – What is liquidity? 2:24 – Root cause of liquidity related accidents 3:42 – How things could go wrong if liquidity is overlooked 6:20 – How we think about liquidity 7:55 – Our advice on liquidity #HarshadPatwardhan #Liquidity #PortfolioLiquidity Invest in Mutual Funds Here: https://www.edelweissmf.com/types-of-... Find a Mutual Fund Guide Here: https://www.edelweissmf.com/find-a-mf... Check out the Money Konnect Podcast Here: Official Website: https://www.edelweissmf.com/investor-... Spotify: https://open.spotify.com/show/6IG34Qi... Google Podcasts: https://podcasts.google.com/feed/aHR0... Stitcher: https://www.stitcher.com/podcast/mone... Apple Podcasts: https://podcasts.apple.com/in/podcast... To know more in detail, connect with us: Website: https://www.edelweissmf.com YouTube: / @edelweissmutualfunds Twitter: / edelweissamc Facebook: / edelweissmutualfund
