In this article we will consider what is a hedge fund and its benefits.
Hedge Funds (English Hedge Funds) – a type of investment funds. Hedge funds use the most effective money management strategies. “Traditional” funds do not apply such strategies.
The concept of “hedge fund” comes from the word “hedge”, which means insuring investment, price or currency risks.
Hedge funds are a versatile, flexible and dynamic financial instrument. In most cases, the strategies they use are based on the simultaneous opening of “long” and “short” positions in different markets. Hedge funds also use strategies that derive income from an inefficient market, as well as futures and options.
The peculiarity of hedge funds is that they receive income regardless of the situation on the securities market. It is already known that the inclusion of hedge funds in the investment portfolio significantly improves the proportionality of profitability and risk.
Types of hedge funds:
- Hedge funds of individual strategies;
- Multiple Strategy Hedge Funds;
- Hedge Funds;
- Hedge funds are guaranteed (in these funds, guarantees to investors are provided by first-class banks).
- The minimum investment is 20-100 thousand US dollars (or the equivalent of this amount in another currency).
Recommended investment periods – from 3 years or more.
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