This video is all about what are Hedge funds, how do they function, the types of hedge funds, and their pros and cons. We also discuss various strategies used by Hedge Funds.
What is a Hedge fund?
A hedge fund is an aggressively invested portfolio made possible through pooling various investments from different investors, institutions, and individuals and further investing in multiple assets. Hedge funds usually have high returns in exchange for higher risk. With various risk management techniques and hedging techniques
, the dangers involved reduce drastically.
Types of Hedge funds.
– Macro hedge funds
– Equity based hedge funds
– Value based hedge funds
Advantages of Hedge funds
– They are flexible funds
– Allow short selling
– Provide greater returns
– Higher chances of diversification
– Reduces loss.
– Best advice from the professionals
Disadvantages of Hedge funds.
– Higher fees
– Lots of risks
– Profit relies on the fund manager’s decision.
– Doesn’t display the overall risk of return pictures.
For more details, you can refer to our article –
https://www.wallstreetmojo.com/what-is-hedge-fund/
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