Finvest ITS SOM

Investment products often sound similar on the surface, but their structure, risk profile, and purpose can be completely different. Two such commonly confused vehicles are mutual funds and hedge funds . While both pool money from investors and are managed by professionals, they are built for very different investors and objectives . This blog explains the difference in full detail , covering structure, strategies, regulation, risk, fees, and real-world relevance.   1. Meaning and Basic Concept Mutual Fund A mutual fund is a regulated investment vehicle that collects money from multiple investors and invests it in a diversified portfolio of securities such as equities, bonds, or money market instruments. The goal is to provide market-linked returns with controlled risk. HedgeFund A hedge fund is a private investment fund that aims to generate absolute returns by using advanced, flexible, and often aggressive strategies , irrespective of market conditions. T...

In today’s business environment, transparency and reliability in financial reporting are essential.  Audit procedures  play a vital role in achieving this by providing a structured approach for auditors to examine whether a company’s financial statements present a true and fair view of its financial position and performance. 1. Planning the Audit The audit process begins with  planning , where auditors develop a thorough understanding of the business, its operations, and the industry in which it operates. This stage involves identifying areas that carry higher risk of error or fraud. Effective planning allows auditors to allocate their time and resources efficiently, ensuring that critical and sensitive areas receive greater attention. 2. Understanding and Testing Internal Controls Once planning is complete, auditors assess the company’s  internal control system . Internal controls are the policies and procedures designed to ensure accurate recording of tran...