At present, in the financial market, hedge funds have attracted the interest of many institutions pursuing high profit returns. However, many investors still have misunderstandings about what a hedge fund is and how to invest it. The following are hedge funds collected by Bian Xiao. Welcome to reading.
What is a hedge fund?
Hedge fund refers to a private investment method in the United States, which pursues performance and controls risks through various strategies and means. Due to the loose supervision of hedge funds, investors can only participate in hedge funds if they have enough wealth to avoid the risks of the targeted funds.
The Securities and Exchange Commission (SEC) of the United States defines the concept of "trusted investor", which must have assets of at least $654.38 million +0 million or have an annual income of at least $200,000 in the past two years ($300,000 for married couples), and expects to maintain this level appropriately.
Hedge funds cannot be publicly issued, because the investors of hedge funds are mostly the general public. The key difference between traditional funds and hedge funds lies in the authorization process for investors.
What should I pay attention to when buying hedge funds?
1. What is the warning line and stop loss line of the product?
2. The hedge fund private fund manager and his team, what is the historical income and past performance of the products.
3. How does the product control the flexibility of funds?
4. What is the maximum withdrawal rate in the historical performance of products? Back at any historical point in the selected period, the rate of return will return when the net product value reaches the lowest point.
Maximum withdrawal range, which is used to describe the worst situation that may occur after purchasing a product. Maximum retracement is an important risk indicator.
What are the risks of graded funds?
1. Graded funds divide the basic share into sub-shares with different risk-return characteristics, but the fund assets are still invested and operated as a whole, so they are also faced with various investment and operation risks.
2. Although the sub-shares with lower returns of graded funds have the characteristics of low risk and relatively stable expected returns, they may still face the risk of failing to obtain the agreed returns or even suffering the loss of investment principal.
3. High leverage has a "double-edged sword" effect, which can amplify the income when it rises, and the investment loss will be amplified simultaneously when it falls.
4. Rationality of valuation. Using the simplified "liquidation principle" to estimate the reference net value of graded shares, regardless of the option value contained in graded shares, can not reflect the true value of graded shares.