Hedge funds. An investment fund. Belonging to the inspection-free market products. Hedge funds are called funds, which are essentially different from mutual funds in terms of security, income and appreciation. The Fund uses various trading methods (such as short selling, leverage, program trading, swap trading, arbitrage trading, derivative products, etc.). ) to hedge, transpose, hedge, and make huge profits. These concepts have gone beyond the traditional operation scope of preventing risks and ensuring benefits. In addition, the legal threshold for launching and establishing hedge funds is much lower than that of mutual funds, which further increases their risks. In order to protect investors, the securities management agencies in North America classify it as a high-risk investment category, and strictly restrict the participation of ordinary investors. For example, it is stipulated that each hedge fund should have less than 100 investors and the minimum investment is $6,543,800+0 million.

Funds have broad and narrow definitions. Fund in a broad sense is the general name of institutional investors, including trust and investment funds, unit trust funds, provident funds, insurance funds, retirement funds and funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income function and value-added potential. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. Because the investors of government agencies and institutions do not require investment returns and investment recovery, but require funds to be used for designated purposes in accordance with the law or the wishes of the investors, funds are formed. The funds we are talking about now usually refer to securities investment funds.

Securities investment fund refers to a collective investment method that collects the funds of many investors through the sale of fund shares to form independent assets, which are managed by fund custodians and fund managers and share the benefits and risks of securities investment in a combined way.