Hexaware Technologies Analyst Interview Questions, Process, and Tips

Funds are pools of money collected from investors and managed by professionals to achieve specific investment objectives.

• Funds can be mutual funds, exchange-traded funds (ETFs), hedge funds, or private equity funds.

• Investors buy shares in the fund and the money is pooled together to invest in a diversified portfolio of assets.

• Fund managers make investment decisions on behalf of the investors and charge a fee for their ...read more

NAV is calculated by subtracting liabilities from assets and dividing by total outstanding shares.

• Calculate the total value of assets held by the fund

• Subtract the total value of liabilities from the total value of assets

• Divide the result by the total number of outstanding shares

• NAV = (Total Assets - Total Liabilities) / Total Outstanding Shares

• Example: If a fund has $10 million in assets, $2 million in liabilities, and...read more

Mutual funds are for retail investors while hedge funds are for high net worth individuals. Hedge funds have more flexibility but higher fees.

• Mutual funds are regulated by the SEC while hedge funds are not.

• Mutual funds are open to all investors while hedge funds are only open to accredited investors.

• Mutual funds have lower fees and are more transparent while hedge funds have higher fees and are less transparent.

• Mutual ...read more

NAV stands for Net Asset Value and its components include assets, liabilities, and shares outstanding.

• Assets include investments, cash, and other holdings.

• Liabilities include debts and other obligations.

• Shares outstanding refer to the total number of shares issued by the fund.

• NAV is calculated by subtracting liabilities from assets and dividing by shares outstanding.

• NAV is used to determine the value of a mutual fund o

A financial contract whose value is derived from an underlying asset or security.

• Derivatives are used for hedging or speculation in financial markets.

• Examples include futures, options, swaps, and forwards.

• They allow investors to take on risk without owning the underlying asset.

• Derivatives can be complex and require specialized knowledge to trade.

• They are regulated by financial authorities to prevent market manipulation

Bonds are debt securities issued by companies and governments to raise capital. Different types of bonds include government, corporate, municipal, and high-yield bonds.

• Government bonds are issued by national governments and are considered the safest type of bond.

• Corporate bonds are issued by companies and are riskier than government bonds.

• Municipal bonds are issued by state and local governments to fund public projects...read more