Iginla2011

the difference is what perspective you're coming at it from. from the fund, yes, a longer lockup would be better because you're not having to deal with big fluctuations in the assets and withdrawals, having to keep excess cash on hand, etc. this Q in the CFAI the dude says for the INVESTOR (not the fund), it's better to be locked up for 5 years. from the perspective of the investor, the sooner you can get out if need be, typically that'd be your preference- to be liquid.