Build your professional network on facebook via our app Go to app
 
 
 
Created by : Veena Gupta, Analyst, Blackstone Group  | 09 13 2008 12:31:53 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : Equities(Markets)
Activity:  362 views;  last activity : 07 06 2010 20:18:09 +0000
How is a mutual fund possibly different from a hedge fund.. let debate on the pros and cons of both..
 
Share
 
 
  Rate : 
 
 
Hedge funds Vs Mutual funds
7
 
 
 
 
0
5
0
Support   Support
Top Argument
2
0
Private investment vehicles,Most hedge fund strategies try to hedge against downturns in the markets, but effectiveness depends on the fund.
By Veena Gupta, Analyst, Blackstone Group  09 13 2008 12:31:53 +0000
 
1
0

I also believe that Hedge funds are better than Mutual funds. They have active and aggressive strategies, churning the portfolio with in minimum desired but stagnant return, less cost attached in comparison to mutual funds, and the regulations are less stringent as compared to the mutual funds. Also, they are more flexible and have less regulations.


By Jyoti Rath, Sr. Associate, Barclays  | 09 04 2009 09:29:11 +0000
2
0

I would og with the hedge funds rather than the mutuak funds because of the active and aggressive  strategies of the hedge funds and churning the portfolio with in minimum desired but stagnant return. And the cost attached in comparison to mutual funds are less. And the regulations are less stringent as compared to the mutual funds.


By Darshil , CEO/MD/Director, Darshil Cotton Company  | 09 04 2009 07:33:04 +0000
1
0

I would go with the Hedge funds...

The reason being flexiblity & less regulation...

 


By Japan Shah, H.O.D, Oxford School of Management  | 09 04 2009 06:52:02 +0000
2
0

The important difference between are flexibility in investment options  and less regulations and hedge funds are capable of generating returns during all market conditions, especially during bear markets they usually outperform mutual funds( short selling, derivatives). Employ leveraging, short selling, derivatives, concentrated investment etc. Mutual funds are expected to give a relative performance while hedge funds are expected to give absolute returns. Also the diversity in their investment strategies help them to take advantages of corporate events (like M&A, takeover etc ), emerging markets and technologies, arbitrage opportunities, mispricing etc.

The disadvantages of hedge funds are high cost and they usually perform in par during a bull market. Also there are limits on number and also require huge investment - retail investors.


By Padmanabhan R, Articled / Audit assistant, Finance student  | 09 03 2009 19:02:38 +0000
Leading Training Company
  • Create a confidential Career Profile and Resume/C.V. online
  • Get advice for planning their career and for marketing of experience and skills
  • Maximize awareness of and access to the best career opportunities
Viewers also viewed
Which is better ULIP or Mutual Funds?
 
25 referals 27 arguments, 2873 views
mutual fund vs insurance
 
342 referals 11 arguments, 284 views
Easy vs Tough
 
4 referals 5 arguments, 242 views
more...  
Recent Knowledge (1)
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 482 views
more...  
More From Author
Twigmore is a new app on facebook, a start up which focuses on Travel and friends, i.e., it will recommend traveling to the destinations your friends and their friends have traveled. This is because they bellieve that while most of the travel...
I second MR.Saket jain here. There is no monopoly in any field if we take the global prospective.
Budding business owners should go virtual wherever and whenever possible. In a fledgling startup, the last thing you need to worry about is excessive infrastructure or expensive overhead. It’s already a difficult enough task to generate income...
more...