Are these funds a type of trading?

Are hedge funds and mutual funds technically a type of S&T position or where does it fit in with investment banking? I get how you work your way up in just investment banking but where do you start if you want to be in a hedge/mutual fund, or sales and trading

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When it comes to mutual funds, they are an investment method that pools together the resources of a corpus to invest them in a wide variety of securities, stocks, bonds and other debt instruments. So basically you are trading in stock market commodities. And hedge funds are an investment method that are open to a limited range of investors who pay a performance fee to the fund manager. With regards to investment banking, mutual funds as well as hedge funds are an important part of the sell side.

 
vinod singhWith regards to investment banking, mutual funds as well as hedge funds are an important part of the sell side.

I hope you mean that they are important CLIENTS of the sellside.

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Best Response

To answer the original post, most mutual funds use fundamental analysis to make investments in their sectors/asset classes. Most mutual fund strategies don't include much active trading. They will have traders who move them in and out of the positions (or will use their brokers), but they aren't trading in the sense that it is used on this forum-asset management is probably the closest fit.

Investment research employees at mutual funds come from similar backgrounds to most front office buyside employees-investment banking and sell-side research.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Sales & Trading is on the other sideof the Chinese Wall than I-Banking at an investment bank.

Beyond salespeople and traders that provide brokerage services to clients (mututal funds, pension funds, hedge funds, etc.), S&T is also where the equity and bond sell-side research analysts sit. Lots sell-side research analysts make the move to the buy-side after 3-6 years of experience.

Some traders from the sell-side make the jump to buyside also.

 

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