Generally speaking, * * * mutual fund is a form of investment and financial management that we see in the market. If you invest in the secondary market, there is a 60% position limit, which means that the minimum position after opening a position cannot be lower than 60%. Even if you predict that the market is weakening, you can't leave completely, and you can't hedge your spot position in the future.

Hedge funds can buy stocks in the spot market and short futures index in the futures market at the same time, so as to preserve value or carry out spread arbitrage. Moreover, hedge funds can use various financial derivatives such as futures and options to hedge market risks and finally obtain stable excess returns.

Although the return of a good hedge fund may not be as high as that of similar funds in the short term when the market is good, in the long run, as long as the operation is good, hedge funds can have better and more stable returns regardless of unilateral decline, unilateral rise or shock consolidation.