Funds are also divided into low-risk and high-risk funds. When the risk of funds investing in stocks is higher, they will fall or rise significantly. Investing in hedge funds can add diversity to a portfolio, which investors can use to reduce their portfolio's overall risk exposure.

Hedge fund managers use specific trading strategies and tools in order to reduce market risk and obtain risk-adjusted returns that are consistent with the risk level expected by investors.

The returns obtained by an ideal hedge fund are relatively independent of the market index. Although "hedging" is a means of reducing investment risks, like all other investments, hedge funds cannot completely avoid risks.

Extended information:

It is difficult for ordinary investors to grasp the correct investment timing at the right time. They may often buy at the high point of the market and sell at the low point of the market. With the fund's regular fixed-amount investment method, no matter how the market fluctuates, a fixed amount is invested in the fund on one fixed day every month;

The bank will automatically deduct the money and automatically calculate the number of fund shares that can be purchased based on the net value of the fund. In this way Investors purchase funds on a regular basis, and the cost of investment is relatively average.

Since regular quotas are invested in batches, when the stock market is consolidating or falling, since regular quotas are taken over in batches, the cheaper you buy, the better the return on investment after the stock market rebounds. It’s also better than a single investment.