FYI: Mr. Henning inquires, "What happens if a fund no longer has the cash to redeem shares?" Presumably, management would sell securities to raise cash. In some instances, though, that is not feasible, because the portfolio's holdings are so illiquid that they cannot be moved immediately. The shareholder who wishes to redeem must wait.
This was the situation with one of Henning's investments. He writes, "The fund managers asked up to five years' patience from shareholders in order to sell the real estate that the fund owned. After almost five years they had sold only about 50% of the assets. Meanwhile, they claimed management costs of about 3% to 4% per year."
Regards,
Ted
https://www.morningstar.com/articles/913568/will-your-mutual-fund-return-your-money.html
