Explain how a structured product

Question

PART 1

1. Distinguish between a mutual fund and a hedge fund

2. Explain the importance of a hedge fund's historical performance and some key points to consider when utilizing this information

3. Discuss the importance of using professional management when investing in hedge funds

4. List some of the different sources you can research for information on hedge funds and fund investing

PART 2

1. Briefly discuss what a separately managed account is and how it differs from a pooled account

2. Explain how an SMA works

3. Explain when an SMA should be chosen over another form of investment

PART 3

1. Briefly discuss what a structured product is

2. Explain how a structured product works

3. Explain the advantages and disadvantages of investing in a structured product

Answer 1

Answer the following questions in a detailed manner using Times New Roman font to complete the task. Problem 1: Differentiate between the term mutual fund and a hedge fund. Problem 2: Describe the significance of the hedge fund's historical performance and a few main points to consider whenever using the information. Problem 3: Illustrate the significance of using professional management whenever investing in the hedge funds. Problem 4: List a few of the different sources you can research for information on the hedge funds and fund investing. Problem 5: In brief, illustrate what a separately managed account is and how it dissimilar from the pooled account. Problem 6: Describe how the SMA works? Problem 7: Describe when an SMA must be selected over another form of investment. Problem 8: In brief illustrate what a structured product is? Problem 9: Describe how a structured product works? Problem 10: Describe the merits and demerits of investing in the structured product.