A mutual fund is completely liquid. You can buy shares one day and sell them the next if that’s what you want to do. An interval fund, as its name suggests, only allows you to sell your shares during pre-set interval periods. Mutual funds are made up primarily of various stocks and bonds, whereas interval funds usually contain a lot of real estate holdings which require the security of a more long-term investment.
Mutual Funds Lower Minimums
If your initial investment level is limited, a traditional mutual fund is much more accessible. The minimum starting investment in a mutual fund can be as low as $100 in some cases. You don’t have to have a lot of money in the bank to invest in a mutual fund. That is not always the case with an interval fund. They often require an initial investment in excess of $10,000. It’s still relatively accessible for the casual investor, but it will tie up a fair bit of cash for a set period. For the investor that wants to keep their assets as liquid as possible interval funds may not be the best option.
