Commodity investment funds and hedge funds are both important investment institutions in the international futures market, and both can participate in futures investment. What's the difference between them? Here, Bian Xiao will begin to analyze the definitions of commodity investment funds and hedge funds, hoping to help you.

What's the difference between commodity investment funds and hedge funds?

1 Different investors: Hedge funds only take futures investment as part of their portfolios, while commodity investment funds mainly invest in futures and options. The investment field of commodity investment funds is smaller than that of hedge funds. Commodity investment funds mainly invest in futures and options of exchanges, and their external performance has low correlation with stock and bond markets.

2 Different organizational forms: In organizational form, commodity investment funds are more standardized, more transparent and less risky than hedge funds. In addition to the above, the organizational structures of these two institutions are also different, but Bian Xiao did not distinguish the organizational structures of these two institutions here. After all, commodity investment funds in different countries are different.

What is a commodity investment fund?

Commodity investment fund refers to the collection of idle funds of investors and entrusted to professional investment institutions. These funds will be traded in futures and options through commodity trading consultants (CTA).

What is a hedge fund?

Hedge funds, also known as hedge funds, belong to private equity funds. They can choose to invest in various securities, currency derivatives and other assets in the open market through short selling, long selling and financing transactions (leveraged trading).