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Mutual funds and hedge funds both pools investor's money into one larger, centrally-managed set of assets. The main difference is in legal structure and regulation. In the US, mutual funds are heavily regulated by the Securities and Exchange Commission (SEC). Because they are unregulated, hedge funds are not open to the general public. The US government only allows high net worth individuals and institutional investors to invest in them. Before 2005, the SEC did not regulate hedge funds at all. Their freedom is now being curtailed. The SEC is now asserting some regulatory power. In the UK, the Financial Services Authority already exercises much more oversight. This is driving hedge funds overseas. In the US, Mutual funds are investment companies that must register with the U.S. Securities and Exchange Commission and are subject to strict regulation under four Federal Laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act. Hedge Funds are not considered to be investment companies, and are thus excluded under the federal securities laws. This may be because of the private nature of their offerings or the financial means and sophistication of their investors (e.g., investment funds with no more than 100 investors and private investment funds whose investors each have a substantial amount of investment assets - $5 million minimum for some funds under Investment Company Act of 1940). Thus, unlike Mutual Funds Hedge Funds do not have to face: * periodic reports under the Securities Exchange Act of 1934; * regulations on the structure and operation of funds; * NASD rules limiting sales charges and other distribution fees that need to be presented in comparable and standard form (e.g., expense ratios); * restrictions on ability to leverage or borrow against the value of securities in its portfolio, which practically eliminate the ability to buy on margin and sell short; * requirements to value portfolios and price their securities daily based on market quotations; * requirements by law to allow shareholders to redeem their shares at any time; * requirements regarding a fund's portfolio diversification and its distribution of earnings; * NASD oversight of fund advertisements and other sales materials; * the need for majority of independent directors who are responsible for extensive oversight of the fund's policies and procedures.

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Q: What is the difference between hedge funds and mutual funds?
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How do mutual fund and hedge fund investments differ?

Mutual funds are only different from hedge funds in that they are purchased completely up front whereas hedge funds are paid for over time.


How does hedge fund differs from mutual fund?

Hedge funds and mutual funds are both managed portfolio in which securities are picked by a fund manager. However hedge funds are more aggressively managed as compared to the mutual fund. They can take speculative positions in the derivative securities .Hedge funds also differs from mutual fund in their availability, they are available to only specific investors .There are many investment companies that invest in hedge fund and mutual fund of which Reliance mutual fund is one of the good one.


What are some important differences between mutual funds exchanged trade funds and the hedge funds?

Mutual funds are more heavily regulated than hedge funds. They are more limited in which asset classes they can invest in, whether they can leverage or short sell. Hedge funds have a more liberal regulation. Exchange traded funds, usually refers to funds that trade over the exchange and many times reflect a basket of commodities, or stocks in a given industry.


How does a hedge fund differ from a mutual fund?

Hedge funds and mutual funds are both managed portfolios in which the securities are picked by a fund manager. The securities that are picked are the ones that the manager feels will perform well and are grouped into a single portfolio. Portions of these funds are then sold to investors who are allowed to participate in the gains and losses of the holdings. However hedge funds are more aggressively managed as compared to mutual funds. They can take speculative positions in derivative securities such as options and can also short sell stocks which will increase the leverage of the fund. This means that hedge funds can also make money in an economic downturn. Mutual funds in comparison cannot take such leveraged positions and do not involve the same level of risk. Hedge funds also differ from mutual funds in their availability. They are only available to a specific group of investors with high net worth while mutual funds are available to any investors with even minimal amounts of money. There are a number of investment companies in India that invest in hedge funds as well as mutual funds of which Reliance mutual funds is a very good option.


Which instruments invests money from many investors in stocks and other securities?

Mutual funds and Hedge Funds


How do fund of funds classify?

Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...


How would you define the term hedge funds?

Hedge funds are investment portfolios that are managed in such a way that the return is expected to be absolute. These management strategies are not usually available for normal mutual funds and are governed by many laws.


Are there any different kinds of mutual funds?

Yes, there are many different kinds of mutual funds. They are:Equity DiversifiedEquity tax savingEquity BalancedContraHedge fundsGilt fundsBond fundsIncome fundsFund of FundsExchange traded fundetc.


What does fund means?

It means a legally established entity for the purpose of harboring resources for a given objective. Examples of funds are investment funds, mutual funds, hedge funds, endowment funds, etc.


What has the author Cathleen M Rittereiser written?

Cathleen M. Rittereiser has written: 'Top hedge fund investors' -- subject(s): Hedge funds, Investment advisors, Mutual funds, Portfolio management, Investments


Types of mutual funds?

There are many different types of mutual funds. Some of them are: a. Equity Diversified b. ELSS funds c. Mid cap oriented funds d. Small cap oriented funds e. Contra funds f. Debt funds g. Gilt funds h. Bond funds i. Hedge funds j. etc


What are the contents of hedge funds?

Contents as in what do hedge funds invest in?


How many hedge funds are there in CA?

There are over 360 hedge funds in California. You can find a list of hedge funds in CA at www.BAHedgeJobs.com Basically intended for job-seekers, but gives contact information for most hedge funds in CA including Los Angeles hedge funds and San Francisco hedge funds.


What are the largest hedge funds?

Here are a couple lists of the top 100 hedge funds and top 50 hedge funds in the US.


What is mutual fund and its type?

A Mutual Fund is an investment instrument wherein a capable and experienced fund manager would pool in money from investors and invest in the stock market on their behalf and share the profit with the investors. There are many varieties of mutual funds which include:Equity fundsDebt fundsMoney market fundsExchange Traded fundsMonthly Income PlansHedge FundsContra funds etc


What are hedge funds?

Some type of pooled investments that invest's in things to make money. The rules vary depending on the manager. They are usually less strict on what to invest in vs. a mutual fund. Hedge funds can do what ever they want to for investments.


Can US-based hedge funds invest in offshore hedge funds?

The certainly can invest in off-shore hedge funds. There are some restriction for individuals to invest in off-shore hedge funds, though, but hedge fund entities certainly can. Off-shore hedge funds offer certain tax advantages to overseas investors, as well as endowment funds, and non-profit organizations. Individual Americans, must declare their earnings from off-shore hedge funds so in that regard they are not better of than investing in on-shore hedge funds.


Types of mutual fund?

The mutual fund market can be broadly classified as-Equity fundDebt fundMoney market fundCash management fundHedge funds


What has the author Philip Coggan written?

Philip Coggan has written: 'Guide to Hedge Funds' 'Guide to hedge funds' -- subject(s): Hedge funds 'Easy Money'


What are the hedge funds in Barbados?

There are many hedge funds there especially those of the global macro variety.


What is the difference between hedging and hedge fund?

Hedging is a general concept also which is made popular by the term "Hedging your bets". This is often done by betting on 2 opposing situations thereby turning a profit regardless of the outcome. In finance a "hedge" is often accomplished by both shorting a stock and buying options to hedge yourself in the chance that the stock goes up. A hedge fund is an unregulated investment fund that are popular amongst high-net worth and institutional investors. Hedge funds are different from mutual funds because they are not regulated, the hedge fund manager has the ability to buy and sell all types of assets, betting on rise and falls of securities.


What's the difference between hedging and hedge fund?

Hedging is a general concept also which is made popular by the term "Hedging your bets". This is often done by betting on 2 opposing situations thereby turning a profit regardless of the outcome. In finance a "hedge" is often accomplished by both shorting a stock and buying options to hedge yourself in the chance that the stock goes up. A hedge fund is an unregulated investment fund that are popular amongst high-net worth and institutional investors. Hedge funds are different from mutual funds because they are not regulated, the hedge fund manager has the ability to buy and sell all types of assets, betting on rise and falls of securities.


What has the author Steven Drobny written?

Steven Drobny has written: 'Inside the house of money' -- subject(s): Hedge funds, Investment advisors, Mutual funds, Portfolio management, Investments


What services are offered by Man Investments?

Services offered by Man Investments are providing mutual fund advice, mutual fund brokers, hedge funds advice and financial year valuations on commodities.


Define Types and importance of Mutual Fund?

There are many types of MFs * Equity Diversified * Debt Funds * Fund of Funds * Hedge funds * Contra funds * Index funds * etc Mutual funds are instruments of investment for the investor who does not have the time or the expertise to trade in stocks. An expert financial investor would pool in money from such investors and trade stocks on their behalf and share the profit or loss with them.