Question

What are the differences between Hedge Funds and Mutual Funds? Specify the differences with respect to...

What are the differences between Hedge Funds and Mutual Funds? Specify the differences with respect to each of these four areas:

            A) Investors

            B) Regulation

            C) Fees for managers

            D) Risks and Investment Strategies

Homework Answers

Answer #1

Difference between hedge funds & mutual funds:

Investor of mutual funds received the units of mutual fund at NAV of the mutual funds while in hedge funds they just invest to secure it from the loss.

In mutual funds regulations of mutual funds are governed while in hedge funds listing regulations of exchange are applicable.

Manager of mutual funds received the fees based on units sold while hedge funds manager received for the fund hedge by them.

In mutual funds long terms investment strategies bare applied while hedge funds are for short term for safeguard from the loss.

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