Liquidity means access to money anytime – either your money invested somewhere or access to borrowed money. Some investments are very liquid some are not. For example, your investment in real estate might not be liquid because selling a house and getting money can take lot of time. It is all about time when it comes to liquidity. On the other hand, investments like Mutual Funds or Stocks are very liquid, you can sell them anytime. Investors should always account for liquidity when making investments