Hedge funds (also known as hedge funds) do not just refer to a certain type of fund. Hedge funds can actually be subdivided into many different types of hedge funds based on three factors: investment return, investment risk and net worth fluctuation.

insurance fund.

The word "hedging" in a hedge fund tells investors that the purpose of this fund is to try to avoid risks.

But risk aversion can also tell investors another more important thing. This fund can also provide you with better-than-average returns.

Hedge funds will definitely not use the lazy investment method that you and I know, because the purpose of this investment method is not to accumulate considerable returns in the short term; hedge funds will not use guerrilla warfare to diversify investment targets.

Because this can easily make fund managers who seize great opportunities make less money.

In reality, different types of hedge funds will use different smart money-making methods to achieve investment goals of low risk and high returns.