Question

In: Finance

Which type of fund is the best to use out of Mutual and Hedge? why ?

Which type of fund is the best to use out of Mutual and Hedge? why ?

Solutions

Expert Solution

I think Those Mutual Funds which have a balanced allocation to equity portion and debt portion are the best funds because they are adequately exposed to different economic scenario and they can sustain and survive and provide a high rate of return through various economic phases and I think balanced Mutual Funds have best criteria of being allocated into both equities and bonds and they will be having a better exposure to deal with various fluctuations in the economy and their performance will be stable.

When The hedge Fund is concerned I will be liking the global macro hedge fund which is investing into various different economy and they will be trying to exploit these conditions and make a higher rate of return through them and they are able to generate higher rate of return because they are trying to play on the exchange rate fluctuations as well, and they will be shorting various securities as well and they've will be properly hedging their positions so due to their exposure to the global Markets and primary play on the economy, these macro hedge funds are always having a competitive edge.


Related Solutions

What is a hedge fund and how is it different from a mutual fund?  
What is a hedge fund and how is it different from a mutual fund?  
Evaluate which fund structure (alternative mutual fund or hedge fund) you would choose for FIM. Your...
Evaluate which fund structure (alternative mutual fund or hedge fund) you would choose for FIM. Your answer should briefly describe the advantages and disadvantages of each structure.
Explain the differences between a mutual fund, an exchange trade fund (ETF), and a hedge fund.
Explain the differences between a mutual fund, an exchange trade fund (ETF), and a hedge fund.
How are hedge fund expenses different from mutual fund expenses? What are hurdle rates and high...
How are hedge fund expenses different from mutual fund expenses? What are hurdle rates and high water marks at a hedge fund? Why are these used?
how a mutual fund is structured. Make sure to explain why mutual fund fee's may or...
how a mutual fund is structured. Make sure to explain why mutual fund fee's may or may not be worth the cost to you. Comment on why you might want to invest in a mutual fund instead of a good stock. Do not take any short cuts answering this question this week, I want detail. This is the investment tool that most individuals use. The companies provide detailed information for you to review every month. There are many types of...
You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that...
You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that primarily invests in medium-sized companies. The mutual fund has a beta of 1.46 measured relative to the S&P Midcap 400, and the net asset value of the fund is $186 million. a. Should you be long or short in the Midcap 400 futures contracts? Long Short b. Assuming the Midcap 400 Index is at 649 and its futures contract size is 500 times the...
8. A hedge fund charges 2% plus 20%. A pension fund invests in the hedge fund....
8. A hedge fund charges 2% plus 20%. A pension fund invests in the hedge fund. Plot the return to the pension fund as a function of the return to the hedge fund. The incentive fee of 20% is charged on the return after subtracting the annual 2%. No incentive fee is charged if the return after subtracting the annual 2% fee is negative. [hint: Probably best if you do this in Excel, however, you could also use grid paper...
Normally, capital gains earned in the mutual fund during the year are paid out to the...
Normally, capital gains earned in the mutual fund during the year are paid out to the investor as capital gains, at the end of the year. REQUIRED: What happens in a year in which the mutual fund suffers net capital losses. What happens, if anything, to the Net Asset Value of a mutual fund after it pays out to investors all of the income it earned during the year. What information in the Fund Facts document helps investors compare management...
4. Out of the following, which is the best acid/base to use to prepare a buffer...
4. Out of the following, which is the best acid/base to use to prepare a buffer with a pH of 11.00? a. hydrogen peroxide b. phenol c. propylamine What ratio of masses of the weak acid/base and its conjugate should you use to make the buffer of the required pH? Use the sodium salt of the conjugate base if you chose a weak acid or the chloride salt of the conjugate acid if you chose a weak base.
A REIT is a mutual-fund type investment that focuses on a. insurance companies. b. growth stocks....
A REIT is a mutual-fund type investment that focuses on a. insurance companies. b. growth stocks. c. stocks in particular industries. d. real estate. e. income stocks. In the context of a mutual fund, "load" refers to a. expected average annual dividend or coupon interest payout. b. expected annual capital gain or loss. c. expected average annual rate of return. d. transaction fees or commissions. e. minimum investment. An income type of mutual fund typically consists of a basket of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT