Agree. In a managed fund, if they get a rush on people wanting to withdraw funds, then the redemption price may fall fairly sharply...... but...... at least you will be able to get the balance of your holdings redeemed and in your bank account.
One of the attractiveness of LICs is that if the market falls and the manager thinks that the fall is unwarranted, then he doesnt have to sell the portfolio holdings. Thats the good news ! The bad news is that the LIC may be fairly small and that any buyers for the shares may be few and far between thus affecting the marketability of your LIC, but also that any potential buyer may set their buy price a long way lower than you are prepared to sell !
So, whilst LICs may have visibility...... Funds have marketability.
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