In fact, the majority of funds are open ended with daily trading, and have a high level of liquidity. There are some investment companies that hold less liquid assets such as infrastructure and real estate, but even these are traded on the main market of the London Stock Exchange.
For the most part, funds invest in companies that are capitalized at $1 billion or more with high levels of liquidity. A minority invest in smaller companies with lower levels of liquidity, but this is very much the exception to the rule.
Volatility levels are on a par with the wider market when comparing like with like funds in the same sector. Most of the bond funds are predominantly invested in investment grade credit and might be considered to be at the lower end of the risk spectrum.