NEW MyLab Finance with Pearson eText -- Access Card -- for Fundamentals of Corporate Finance
NEW MyLab Finance with Pearson eText -- Access Card -- for Fundamentals of Corporate Finance
3rd Edition
ISBN: 9780133543889
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
Question
Book Icon
Chapter 1, Problem 22P
Summary Introduction

Mutual Funds:

Mutual funds are a type of investment scheme that are professionally managed by the asset management company also called as the AMC. They pool in the money of a large number of investors and invest those funds into different sectors thereby diversifying their risk.

Pension Funds

Pension funds are those funds that are accumulated throughout the time till when an employee works. The employer needs to do certain contributions during this time period and the funds are invested on behalf of the employee and when he retires he will gradually get these accumulated funds. This is known as the pension fund.

Hedge Funds

Hedge funds are those funds that reduce the risk to the capital of the investors from the market volatility by doing both the buying and selling of the securities, trading bonds, convertible bonds, currencies and so on. They apply alternate methods to investment to hedge the risk.

To Identify:

The similarities and differences between the mutual funds, pension funds and hedge funds.

Blurred answer
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education