Financial Associate III Interview Questions and Answers

Performance fees are fees charged by investment managers based on the performance of the investment, while management fees are fixed fees charged for managing the investment.

• Performance fees are typically a percentage of the investment gains, and are only charged if the investment performs well.

• Management fees are charged regardless of the investment performance, and are typically a percentage of the total assets under management.

• Performance fees are meant to incentivize inve...read more

Hedge funds are private investment funds for wealthy individuals and institutions, while mutual funds are open to the public.

• Hedge funds are less regulated and have more flexibility in their investment strategies.

• Hedge funds typically charge higher fees and have higher minimum investment requirements.

• Mutual funds are more accessible to the general public and are regulated by the SEC.

• Mutual funds are typically less risky and have lower fees than hedge funds.

• Examples of hedge f...read more

A hedge fund is a type of investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets.

• Hedge funds are typically only available to high net worth individuals and institutional investors.

• They use a variety of investment strategies, including leveraging and short selling, to generate high returns.

• Hedge funds are less regulated than other types of investment funds and are known for their high fees.

• Examples of hedge ...read more