Fund Accounting Analyst Interview Questions and Answers for Freshers

Financial markets refer to the platforms where financial instruments are traded, such as stocks, bonds, and commodities.

• Financial markets are where buyers and sellers come together to trade financial instruments.

• These instruments can include stocks, bonds, commodities, currencies, and derivatives.

• Financial markets can be divided into primary and secondary markets, depending on whether the instruments being traded are newly issued or already existing.

• Examples of financial mark...read more

NAV is calculated by subtracting liabilities from assets and dividing by the number of outstanding shares. NAV validation ensures accuracy of the calculated NAV.

• NAV is calculated by taking the market value of assets, subtracting liabilities, and dividing by the number of outstanding shares.

• For example, if a fund has $1,000,000 in assets, $100,000 in liabilities, and 100,000 outstanding shares, the NAV would be ($1,000,000 - $100,000) / 100,000 = $9.

• NAV validation involves ver...read more

Options, swaps, and CDS are financial instruments used for hedging and risk management.

• Options are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.

• Swaps are agreements between two parties to exchange cash flows based on different financial instruments, such as interest rates or currencies.

• CDS (Credit Default Swaps) are contracts that allow investors to protect themselves against the risk of...read more

Fund accounting role offers a challenging and dynamic work environment with opportunities for growth and development.

• I am passionate about finance and accounting

• I enjoy working with numbers and analyzing financial data

• I am interested in the investment industry and want to learn more about it

• I am excited about the opportunity to work with a team of professionals and contribute to the success of the organization

• I believe that fund accounting is a critical function in the invest...read more

AIF stands for Alternative Investment Fund, which is a privately pooled investment vehicle that collects funds from investors for investing in different asset classes. Mutual funds are investment vehicles that pool money from multiple investors to invest in securities like stocks, bonds, and other assets.

• AIFs are typically used by high-net-worth individuals and institutional investors to access alternative investment strategies such as hedge funds, private equity, and real es...read more