Untradeable assets

Untradeable assets are securities that can’t be easily bought and sold due to the fact they’re not freely traded in the open market. The main reason that some assets are non-marketable is to ensure stable ownership of money.

Where have you heard about untradeable assets?

A bank deposit is an everyday example of an untradeable asset. Although you have money in a bank account, you can’t sell it when you close the account. That’s because these assets are non-transferable. Other examples of untradeable assets include life insurance investments and post office deposits.

What you need to know about untradeable assets.

Untradeable assets are the opposite to marketable assets, which can be easily traded on a secondary market. Shares, bonds and funds are all examples of tradable assets.

As an investor, it’s recommended you maintain a balanced portfolio. That’s why it’s always a good idea to have some untradeable assets with little or no risk attached to them, even though the returns aren’t great. You can mix them with marketable assets that have medium to high levels of risk but which have a higher return on investment.