Liquidity

An important advantage of UCITS funds is that it's easy to buy (subscribe) or sell (redeem) shares (or units) in funds, and the cost or proceeds is exactly equal to the value of the investor's share of the fund assets, subject to any fees and commission charges. Investors in UCITS funds have a legal right to have their shares redeemed according to a procedure set out in the fund's prospectus. They may usually sell (or buy) shares on either a daily or weekly basis, depending on the fund's terms and conditions, at a price calculated by the fund's administrator. If you need to cash in all or part of your investments, for example to meet family needs or to buy an asset such as a house, you can do so at relatively short notice. You will not have to accept a lower price in order to access your money quickly.

Exchange-traded funds aim to offer instant liquidity as their shares can be traded at any time on the relevant stock market, like company shares. However, investors' ability to sell and the price they receive may vary, especially at times of market turbulence.