In the context of liquidity, which type of investment is LEAST suitable for an investor?

When considering liquidity, it's essential to understand how quickly and easily an investment can be converted into cash without significant loss of value. Hedge funds using leverage often engage in complex investment strategies, which may involve holding illiquid assets or derivatives. This can result in longer redemption periods and potential restrictions on when an investor can access their capital.

In contrast, money-market funds, government bonds, and blue-chip stocks are typically more liquid investments. Money-market funds are designed to offer high liquidity and have a short-term investment horizon. Government bonds generally have established secondary markets, facilitating easier buying and selling. Blue-chip stocks represent shares in well-established companies with significant market capitalization, allowing for relatively quick and straightforward transactions.

Hence, the nature of hedge funds using leverage makes them the least suitable option for an investor concerned about liquidity, as they may face challenges accessing their invested capital promptly.