Financial Management

30

Hedge Funds and Mutual Funds

“I don't play the game by a particular set of rules, I look for changes in the rules of the game.”

 

Anonymous

LEARNING OBJECTIVES

After reading this chapter, you will be able to:

1. Understand the concept and rationale of hedge funds.

2. Describe the characteristic features of hedge funds and understand the difference between a hedge fund and a mutual fund

3. Look at the various hedge fund investment strategies.

4. Understand the concept and nature of mutual funds.

5. Gain insight into the Indian mutual fund industry.

6. Understand the different types of mutual funds and their objective.

FINANCE IN PRACTICE

In 1994, John Meriwether, a famous bond trader, established a hedge fund called long-term capital management (LTCM). ...