What are hedge funds?

A hedge fund is a fund that includes investments from the private sector and uses a range of private strategies and techniques to make profitable investments across the domestic and global financial sectors. Hedge funds often focus on high-risk, high-return sectors.

The sectors that hedge funds love are derivatives, futures, and niche or complex tickers. The characteristic of hedge funds is that they usually operate in the form of a partnership or limited liability company and rarely have more than 500 investors.

Features of Hedge Funds

Hedge funds often attract a lot of investment capital from individuals, because their tricks - techniques - tricks are many, whether the market is up or down they can make a profit.

In addition, the rating scale for a Hedge Funs is often not calculated according to any standard, in other words, is not limited to the scale of the S&P 500, hedge fund managers do not care much. about these scores. They aim to be the rate of return per year.

If you think they monitor the market 24/7, it's not, their primary goal is to protect the Investor's Portfolio (i.e. their clients). Many hedge funds that have demonstrated this goal still generate very high returns, such as the Quantum Fund managed by the legendary George Soros, whose annual returns exceed 30% for more than a decade. (Read: Top 20 Greatest Investors - George Soros)

How to be invested in Hedge Funds?

Simply have lots of money. Because of the high returns, world-class fund management manipulating, the available niche market, too good right? Because of this "fragrance", most hedge funds need a minimum investment of 1 million USD. The top 10 Hedge Funs in the world average about 5 million USD.

If you feel too expensive, you can choose smaller, recently established investment funds, but the risk will be higher, the lowest level to invest is about 100,000 USD. However, there is also a downside, which is liquidity. Investments can be locked up for a period of 5 years.