Asset Managers Think Interval Funds Are the Hot New Thing

Asset Managers Think Interval Funds Are the Hot New Thing

Assessment

Interactive Video

Business

University

Hard

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The video discusses interval funds, which allow investors to withdraw money at set intervals, enabling the holding of illiquid assets and potentially offering an illiquidity premium. Despite high fees, these funds are gaining interest due to growth in private equity and credit. They provide access to assets not typically available to ordinary investors. The video also covers the risks and protections associated with interval funds, highlighting how they can prevent fire sales during market runs. Liquidity is debated, with some viewing it as overrated.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are interval funds and how do they differ from traditional funds?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What challenges do interval funds face in the current investment landscape?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential benefits of investing in illiquid assets through interval funds?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways can interval funds provide access to assets that ordinary investors might not typically have?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

How do interval funds manage liquidity and protect investors during high demand for withdrawals?

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