According to different standards, securities investment funds can be divided into different types:
(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds.
Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
(2) According to different organizational forms, it can be divided into corporate funds and contractual funds.
A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.
(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.
(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.
Fund risk:
Investing in hedge funds can increase the diversity of the portfolio, and investors can reduce the overall risk exposure of the portfolio. Hedge fund managers use specific trading strategies and tools to reduce market risk and obtain risk-adjusted returns, which is consistent with investors' expected risk level. The return of an ideal hedge fund has nothing to do with the market index. Although "hedging" is a means to reduce investment risks, hedge funds, like all other investments, cannot completely avoid risks. According to the report released by hennessey Group, during the period from 1993 to 2000, the fluctuation range of hedge funds was only about 2/3 of the S&P 500 index.
Transparency and regulatory matters
Because hedge funds are private equity funds, there is almost no requirement for public disclosure, and some people think it is not transparent enough. There are also many people who believe that compared with other financial investment management companies, hedge fund management companies are subject to less supervision and lower registration requirements, and hedge funds are more susceptible to special risks caused by managers, such as deviation from investment objectives, operational errors and fraud. 20 10 the new regulatory regulations proposed by the United States and the European union require hedge fund management companies to disclose more information and improve transparency. In addition, investors, especially institutional investors, also urge hedge funds to further improve risk management through internal control and external supervision. With the increasing influence of institutional investors, hedge funds have become more and more transparent, and more and more information has been published, including valuation methods, positions and leverage.
The same risks as other investments.
There are many similarities between the risks of hedge funds and other investments, including liquidity risk and management risk. Liquidity refers to the ease of buying, selling or realizing assets; Similar to private equity funds, hedge funds also have a closed period, during which investors cannot redeem them. Management risk refers to the risk brought by fund management. Management risks include: unique risks of hedge funds such as deviation from investment objectives, valuation risk, capacity risk, concentration risk and leverage risk. Valuation risk means that the net asset value of an investment may be miscalculated. Too much investment in a certain strategy will lead to capacity risk. If the fund's exposure to an investment product, department, strategy or other related funds is too large, it will cause concentrated risk. These risks can be managed by controlling conflicts of interest, limiting the allocation of funds and setting the scope of strategic exposure.
Some people think that some funds, such as hedge funds, will prefer risks in order to maximize returns within the risk range that investors and managers can tolerate. If managers invest in funds themselves, they will have more incentive to improve risk supervision.
risk management
Most countries stipulate that hedge fund investors must be experienced and qualified investors, be aware of the risks of investment and be willing to bear these risks, because the possible benefits are related to risks. In order to protect funds and investors, fund managers can adopt various risk management strategies. The Financial Times said: "Large hedge funds have the most mature and accurate risk management measures in the asset management industry." Hedge fund management companies may hold a large number of short-term positions or have a particularly comprehensive risk management system. The fund can set up a "risk officer" to be responsible for risk assessment and management, but it can not interfere with the transaction, or it can adopt a formal portfolio risk model and other strategies. Various measurement techniques and models can be used to calculate the risk of hedge fund activities; According to the different fund size and investment strategy, fund managers will adopt different models. Traditional risk measurement methods do not necessarily consider the normality of returns and other factors. In order to comprehensively consider all kinds of risks, we can make up for the defect of using VaR to measure risks by adding models such as impairment and "lost time".
In addition to evaluating the market-related risks of investment, investors can also evaluate the risk that the mistakes or frauds of hedge funds may bring losses to investors according to the principle of prudent operation. Matters that should be considered include the organization and management of business by hedge fund management companies, the sustainability of investment strategies and the ability of funds to develop into companies.
The above is what Bian Xiao shared today, and I hope it will help everyone.