Faculty of Management Department, IIMT, Aligarh, India.
Online published on 7 February, 2013.
Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. Hedge funds are not sold to the public or retail investors.. Regulations passed in the United States and Europe after the 2008 credit crisis are intended to increase government oversight of hedge funds and eliminate certain regulatory gaps.
Therefore this paper focuses upon the funds and their managers which have historically not been subject to the same restrictions that govern other funds and investment funds managers with regard to how the fund may be structured and how strategies and techniques are employed.