Hedge Funds | Foundations Fund From Short To Long

The bottom line is simply a short term investment fund that uses hedging strategies of funds. The difference in long-short funds compared to the average mutual fund is that they use short positions to maximize performance regardless of market conditions. There are laws that control the amount of short positions and derivatives may be used in a short term bottom, so there are controls that govern the success of these funds can be. Most investment. in a short term bottom is in stock so the risks are certainly there.

Why invest in a fund in the short term?
Many investors are unaware of the background from short to long and don 't know why it would be beneficial. Basically, a short term bottom is the method created by the mutual fund industry to offer the average investor the advantages of hedge funds. The advantage of long-short fund has more than a traditional mutual fund is that rates are generally lower and there is no lock in period is applied. On the other hand, charges associated with short-term bottom will be higher than most mutual funds. The short-term fund is different from mutual funds and the minimum initial investment. In most cases, investors will have to invest a minimum of $ 1,000 or more. On the other hand, the bottom of a short time can 't include short positions as many derivatives and leveraged hedge funds are allowed. However, investors will find the long-short fund diversifies its portfolio, regardless of market direction.

Of course, investors today 's are reluctant to put all your eggs in one basket, so to speak, and diversification of truth is necessary to reduce the risk of losing everything in a volatile market. Fortunately, investors take advantage of the benefits of short-term bottom may, in principle, to make money when the market is up and down.

Note the short-term fund has not existed for a long time, which means that their overall success in the long run remains to be seen. However, many investors and fund managers are hoping that these investment. will be played the way everyone expects it will. Time is the only way to know if the short-term fund is worthy of his new popularity.