Fund Accounting Associate Interview Questions and Answers

Mutual funds and hedge funds differ in their investment strategies and regulations. Balance sheet shows a company's financial position. Accrual journal entries record revenues and expenses when they are earned or incurred. Subscription journal entry records new investments in a fund. Performance and management fees are charges for managing a fund's assets.

• Mutual funds are regulated investment vehicles that pool money from multiple investors to invest in securities, while hedg...read more

Derivatives are financial instruments whose value is derived from an underlying asset. Mutual funds are investment vehicles that pool money from multiple investors to invest in securities.

• Derivatives are contracts between two parties that derive their value from an underlying asset such as stocks, bonds, commodities, or currencies.

• Types of derivatives include options, futures, forwards, and swaps.

• Mutual funds are investment vehicles that pool money from multiple investors to ...read more

NAV calculation refers to the process of determining the net asset value of a fund.

• NAV calculation involves valuing all the assets in a fund, subtracting liabilities, and dividing by the number of outstanding shares.

• It is typically done at the end of each trading day to provide an accurate reflection of the fund's value.

• NAV calculation is important for investors to understand the true value of their investments in the fund.

A derivative is a financial contract whose value is derived from the performance of an underlying asset, index, or entity.

• 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.

• The value of a derivative is based on the expected future price movements of the underlying asset.

• Derivatives are trade...read more