Which of the following has highest level of liquidity?a. Mutual Fundsb. Fixed depositc. Real estated. Gold

The level of liquidity of an asset refers to how quickly it can be converted into cash without affecting its market price. Here is a step-by-step analysis of the liquidity of the options provided:

a. Mutual Funds: Mutual funds are quite liquid as they can be sold on any business day to receive cash. However, the time it takes to actually receive the cash can vary.

b. Fixed Deposit: Fixed deposits have a specific maturity date. If you withdraw before this date, you may have to pay a penalty. Therefore, they are less liquid than mutual funds.

c. Real Estate: Real estate is typically the least liquid asset. Selling property can take a significant amount of time, especially if the market conditions are not favorable.

d. Gold: Gold is a fairly liquid asset. It can be sold easily, but the price you get can depend on the current market conditions.

Therefore, out of the options provided, mutual funds generally have the highest level of liquidity.