Mutual funds traditionally keep a small percentage of their funds in highly liquid assets such as bank CDs, since some shareholders may want to redeem shares on any given day. What percentage of total assets is typically held in a very liquid form?

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Mutual funds typically hold a small portion of their assets in highly liquid forms, such as bank CDs, to meet redemption requests by shareholders. This amount is generally around 4% to 6% of their total assets.

Mutual Funds Traditionally Keep a Small Percentage of Their Funds