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.

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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.

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