INVESTMENT BANKERS AND COMPANIES | 205 A real estate investment fund resembles a closed-end fund and invests in real estate (residential and commercial) Hedge funds also pool investors’ money to...

INVESTMENT BANKERS AND COMPANIES | 205 A real estate investment fund resembles a closed-end fund and invests in real estate (residential and commercial) Hedge funds also pool investors’ money to invest in a wide variety of securities; but, unlike the case with mutual funds, only wealthy investors participate An exchange-traded fund is a fund that can be traded on an exchange just like any other stock Questions and problems 1. You want to decide between two mutual funds that track a market index, say the S&P 500, and you see that one fund manages $100 million in assets while the other manages $400 million in assets. Which factors would you consider before selecting a fund, assuming that the managers’ styles of each fund are not an issue?