10+ Fund Accountant Interview Questions and Answers for Freshers

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

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

• Mutual funds are more diversified, while hedge funds are more focused on specific strategies.

• Mutual funds have lower fees, while hedge funds have higher fees and require larger minimum investments.

• Mutual funds are required to disclose their holdings regularly, while hedge funds are not.

• Examples of mutual funds include...read more

Yes, hedge funds operate in India.

• Hedge funds have been operating in India since the early 2000s.

• The Securities and Exchange Board of India (SEBI) regulates hedge funds in India.

• Some examples of hedge funds operating in India are AQR Capital Management, Bridgewater Associates, and DE Shaw.

• Hedge funds in India primarily invest in equities, fixed income, and derivatives.

Equity represents ownership in a company and can be affected by stock splits, dividends, right issues, and bonus issues.

• Equity represents ownership in a company, giving shareholders a claim on assets and earnings.

• Stock splits increase the number of shares outstanding while decreasing the share price proportionally.

• Dividends are payments made by a company to its shareholders from its profits.

• Right issues allow existing shareholders to purchase additional shares at a discounted...read more

A fund accountant is responsible for managing financial records and reporting for investment funds.

• Maintains accurate financial records for investment funds

• Prepares financial statements and reports for investors

• Calculates and distributes profits and losses to investors

• Monitors compliance with regulatory requirements

• May work for hedge funds, private equity firms, or mutual fund companies

Fund accounting is a specialized accounting system used by non-profit organizations and government agencies to track and manage funds.

• It involves tracking and reporting on the use of funds for specific purposes

• It is used by organizations such as charities, universities, and government agencies

• It requires strict adherence to accounting standards and regulations

• Examples include tracking donations for a specific project or program, or managing government grants for a specific pu...read more

Management fee is calculated as a percentage of assets under management.

• Management fee is typically calculated as a percentage of the total assets under management.

• The percentage can vary depending on the agreement between the fund manager and the client.

• For example, if the management fee is 2% and the total assets under management are $1 million, the fee would be $20,000.

Master-feeder structure is a common investment structure where multiple feeder funds pool their assets into a single master fund.

• Master fund is the main fund that receives investments from feeder funds.

• Feeder funds are separate funds that pool capital from investors and then invest in the master fund.

• Allows for economies of scale and efficient management of investments.

• Commonly used in hedge funds and private equity funds.

• Example: A hedge fund may have multiple feeder funds 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 traditional investment funds and are not required to disclose their holdings to the ...read more

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

• Hedge funds are typically open to a limited number of accredited investors and require a large initial investment.

• They use a variety of strategies to generate returns, including long and short positions, leverage, and derivatives.

• Hedge funds are known for their flexibility in investment strategies and their ability to generate high re...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage.

• Common types of derivatives include options, futures, forwards, and swaps.

• Derivatives allow investors to take on risk or hedge against risk without owning the underlying asset.

• They are often used by financial institutions, corporations, and individual investors.

• Derivatives can be traded on exchanges or over-the...read more