Hedge Fund Vs                        Mutual FundHedge funds are like mutual funds in some ways. Investment professionals i...
Difference 1   Hedge Funds                     Mutual FundsFocus on absolute           Focus on relative returns.         ...
Difference 2Hedge Funds                          Mutual FundsCan invest in any asset class -      Work within a risk contr...
Difference 3   Hedge Funds                   Mutual FundsThey can borrow to bet      They can borrow – but withinbigger an...
Difference 4  Hedge Funds                 Mutual FundsThey can run highly        The objective is toconcentrated portfolio...
Difference 5Hedge                 Funds          Mutual FundsMeant for those who are already      Meant for people at larg...
Difference 6Hedge Funds                         Mutual FundsWork on 2/20 basis which           They carge 1.25% on the fir...
Difference 7Hedge Funds                     Mutual Funds  Hedge Funds are virtually   Mutual funds are heavilyunregulated....
Difference 8Hedge Funds             Mutual Funds                        They are sold asThey cannot market                ...
Hedge Fund Vs Mutual Fund
Upcoming SlideShare
Loading in …5
×

Hedge Fund Vs Mutual Fund

2,590 views

Published on

Hedge funds are like mutual funds in some ways. Investment professionals in a hedge fund pool in money from investors to be managed - exactly like the mutual funds do. And, subject to some minor restrictions, investors in hedge funds can withdraw their money as they can in a mutual fund. Nothing else is similar.

Published in: Economy & Finance, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,590
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
64
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Hedge Fund Vs Mutual Fund

  1. 1. Hedge Fund Vs Mutual FundHedge funds are like mutual funds in some ways. Investment professionals in ahedge fund pool in money from investors to be managed - exactly like the mutualfunds do. And, subject to some minor restrictions, investors in hedge funds canwithdraw their money as they can in a mutual fund. Nothing else is similar. Let meexplain the differences.
  2. 2. Difference 1 Hedge Funds Mutual FundsFocus on absolute Focus on relative returns. Returns should be higherreturns than benchmark
  3. 3. Difference 2Hedge Funds Mutual FundsCan invest in any asset class - Work within a risk controlled andstocks, bonds, commodities, compliance framework set up byreal estate, private partnerships, the regulator. Hence very risky- or exotic debt products like asset classes are prohibited forpackaged sub-prime mortgages. investment
  4. 4. Difference 3 Hedge Funds Mutual FundsThey can borrow to bet They can borrow – but withinbigger and enhance SEBI guidelinesreturns.
  5. 5. Difference 4 Hedge Funds Mutual FundsThey can run highly The objective is toconcentrated portfolios. protect investors’ investment and hence diversification is the key principle.
  6. 6. Difference 5Hedge Funds Mutual FundsMeant for those who are already Meant for people at largerich. Hedge funds are open only to providing them with an optionaccredited investors defined as of building wealth throughthose with net worth of more than equity and debt investments.$1.5 million, or income in excess Mutual Funds allow even smallof $200,000 in each of the past investors to participate.two years. The good onesdemand $1 million or more ofinvestment.
  7. 7. Difference 6Hedge Funds Mutual FundsWork on 2/20 basis which They carge 1.25% on the firstmeans they charge 2% a year 100 crores of the AUMby way of management fees managed. Annual expensesand 20% of the net profit. They can go upto 2.25% to 2.50%.do not share in losses.
  8. 8. Difference 7Hedge Funds Mutual Funds Hedge Funds are virtually Mutual funds are heavilyunregulated. regulated because investor safety is the most important requirement
  9. 9. Difference 8Hedge Funds Mutual Funds They are sold asThey cannot market products to enhancethemselves publicly. wealth.

×