Investments · Personal Finance

What are Hedge Funds ?

A hedge fund is a fund that can take both long and short term leverages and buy and sell undervalued securities , trade options and bonds and invest in almost in any oppurtunity where it sees an impressive gain .The primary aim for a hedge fund is to reduce voltality and risk while attempting to preseve capital and deliver positinve results to its investors .

Hedge funds are alternate investment which may use different number of strategies to earn active returns for their investors.They may use the derevative leverage in both the domestic and international markets with the goal of generating high incomes .Since they have a low correlation with traditional protfolios consisting of equites and bond they are a good medium of diversification for an investor .

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