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Funds that invest in property or infrastructure must reconcile slow asset realisation with investor flows. Open‑ended vehicles exposed to illiquid assets commonly employ liquidity management tools: notice periods and redemption frequency limit sudden outflows; gates and temporary suspensions protect remaining investors; and swing pricing allocates transaction costs to redeeming or subscribing investors to maintain fairness.
Closed‑end structures avoid daily liquidity by fixing an investment horizon, while secondary market architectures (regulated trading venues, platform‑based order books or buyback facilities) can create optional liquidity for holders of fund shares or SPV equity. Some platforms rely on designated market‑makers or liquidity pools to provide price continuity, but this liquidity can be limited and subject to spread and depth constraints during stress.
Liquidity management interacts with valuation policy. Funds apply dealing‑cut‑off times, valuation lags and holding period requirements to align NAV calculations with underlying asset liquidity. From a prudential perspective, system authorities and central banks monitor liquidity mismatch risks because sudden unwinding in stressed markets can force fire sales of illiquid assets, amplifying systemic pressures.
Retail investors considering fractional digital shares should check how the vehicle manages liquidity risk—whether through structured redemption terms, secondary market arrangements or embedded liquidity facilities—and understand the practical limitations on timely exit that can apply to real‑asset exposures.