1) what is the difference between hedge fund, private equity fund, mutual fund and Real estate investment trust?

2.Explain fee structure of hedge funds and how it impacts on hedge funds performance

3. Explain effects of 40 Act and how hedge funds can bypass it?

4. give example of activist hedge fund bankruptcy?

Answer (1):

Hedge fund are investments that use pooled money and a variety of tactics to earn returns for their investors.

The aim of hedge fund is to provide the highest investment returns possible as quickly as possible.

Private equity funds invest directly in companies by either purchasing private firms or buying a controlling interest in publicly traded companies.

Unlike hedge fund focused on short term profits, private equity funds are focused on long term . Potential of the portfolio of companies they hold an interest in or acquire.

Mutual funds are regulated investment products offered to the public and available for daily trading.

Mutual fund activities are more transparent. It returns are smaller but more reliable as compare to hedge fund.

Real estate investment trust is a company that owns and in most cases operates income producing real estate.

It owns many type of real estate, commercial real estate, offices, apartments,warehouses, hospitals, shopping center, hotels and many more.

Investors make most money by collecting rent on the property they own. As the value of property goes up, shareholders' investment also grow up and it generates even more income.