Forex investment limited is a project based on hedge fund operation. One unique feature of forex invest limited is that it can both trade on the forex market as well as the security market. It also has so many other opportunities for trading on over the counter securities.
WHAT IS HEDGE FUND?
A hedge fund is a sophisticated investment instrument that pool capital from various investors to invest. Essentially it is a partnership that uses different strategies to pool money to invest either short term or long term. It buys, sells, all manner of instruments, invest in commodities and so many other trading activity.
A hedge fund is somewhat only open to a segment of investors who are high net worth, that who have a lot of cash, it is also utilized by endowment fund, pension funds etc. their investment strategy is to bring together their hug capital into one purse and from this they can now invest in a range of opportunities. While it is called a hedge fund is that with this wide spread of investment, they can ‘hedge’ the investor against major loses as one gain a gain in one portfolio can cover or make up for a loss in another.
KEY CHARACTERISTICS OF HEDGE FUNDS
Wider freedom of investment
A hedge fund is almost unlimited in what they can put their massive fund into anything which may be
HOW HEDGE FUND IS DIFFERENT FROM MUTUAL FUNDS
There are many similarities between a hedge fund and mutual fund but they are also very different. Both are managed portfolio.
Hedge funds are more aggressively managed than mutual fund. One of the reasons for this is that the managers of the fund also have a stake, they invested in the fund. Besides that massive amount involved and the influence wielded by the investors also give them asses to advertisement and a bit of inside information.
Mutual fund are available to wider available audience while hedge fund is only open to sophisticated and high net worth individuals, endowment funds and such groups that can raise good capital.
The hedge funds are freer to put the money in whatever can be proven to yield good return. This is possible because there is less restriction since the investors give a free hand to the managers; the most important thing being returns. Besides, there are fewer government regulations covering hedge funds.
The mutual fund is often registered, properly advertised for the general public to invest in. it’s almost an all comers affair in which anyone with a sizeable income can buy into. A hedge fund on the other hand is closed up, it is often UN registered with only about 100 to 500 wealthy investors, and it is most times not advertised to everyone.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.