What is hedgefund?

An assertively managed folder of investments that uses advanced investment strategies such as control, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark).

Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors keep their money in the fund for a minimum period of at least one year.

It's a non-profit organization that takes donations to ensure the well being of various shrubbery.

A hedge fund is a fund that uses alternative investment assets and strategies to capitalize on sudden opportunites and arbitrage options in financial markets.

The funds are pooled from high networth as well as institutional investors to make multi million dollar bets on investing the capital.

Investing Indiaâ„¢- Your one stop resource for investment ideas
http://investingindians.blogspot.com

Hedge fund is basically used in FOREX Transaction. It is fund kept aside due to Fluctuation in Forex Transactions

you hedge your risk under hedge funds. These funds have not entered india as yet but the strategies of hedge fund are widely used to cover risk. there is a website which will tell you the defination of hedge funds and other kind of funds too.
http://www.godmind.co.in/mutual_fond_for_u/portfolio_classification.htm

Hey Srinath :)

You must have come across the word in some media report as the subprime crisis unfolded and many hedge funds collapsed in US ... right ?

See a hedge fund is a private investment fund charging a performance fee and typically open to only a very limited range of qualified investors.

In the United States, hedge funds are open to accredited investors only. Because of this restriction, they are usually exempt from any direct regulation by the SEC, NASD and other regulatory bodies.

A hedge fund's activities are limited only by the contracts governing the particular fund, so they can follow complex investment strategies, being long or short assets and entering into futures, swaps and other derivative contracts.

They often hedge their investments against adverse moves in equity and other markets, because a common objective is to generate returns that are not closely correlated to those of the broader financial markets.

In most countries hedge funds are prohibited from marketing to non-accredited investors, unlike regulated retail investment funds such as mutual funds and pension funds. As hedge funds are essentially a private pool of managed assets, and as their public access is commonly restricted by the government, they have little to no incentive to release their private information to the public.

INDIA UPDATE: As the dust raised by the subprime fiasco settles, hedge funds will have the option to trade directly in India. Capital market regulator Sebi on August 16 has decided to allow hedge funds to register directly as foreign institutional investors (FIIs). Sebiâ€™s move will discourage the practice of hedge funds investing in Indian equities indirectly through participatory notes (PNs) and reduce transaction costs.

READ THIS LINKS TO KNOW MORE:

1. www.magnum.com/hedgefunds/abouthedgefund...
2. www.hedgefundreader.com
3. www.hedgefundtips.org

Hope these help a little

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.064
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy