Explain in a detailed manner the main challenges in managing a long only equity fund.

Portfolio Management Mid

Students are required to demonstrate the benefits of investing in mutual funds as
discussed in webinars. Grading guidelines are given in the rubric below.
Students should consider both “direct” forms of investment and ETF and Mutual Fund
“bundles” when addressing this task.
The students are required to perform: 4 Essay questions:
Alternative funds assets under management have been growing during the last 30 years
and are now one of the main forces within the stock markets. Please explain the main differences
between an alternative fund and a long only fund .
Explain in a detailed manner the main challenges in managing a long only equity fund.
Risk is a main consideration when managing an equity portfolio. explain a
detailed manner the following key terms:
3.1. Market neutral / risk neutral
3.2. Risk averse
3.3. Hedging – on an alternative fund and on a long only fund
3.4. Volatility
3.5. Expected return
Describe the various equity mutual funds available to investors and the main differences within the various types of equity mutual funds.