| WealthCapfund also accepts the hedge funds | | | | specific corporate events, such as take over and |
| which is one of the fastest growing areas of | | | | mergers. |
| investment management. Hedge funds are any | | | | 4. Tactical Trading Strategy: These are the |
| unregistered, privately offered, managed pool of | | | | highest risk of all hedge funds as a sector. |
| capital for wealthy, sophisticated and financially | | | | These strategies are not as easily accessible. Most |
| sound investors. | | | | often, hedge funds are set up as private |
| They are usually structured as partnerships with | | | | investment partnerships legally that are open to a |
| the general partner being the portfolio manager, | | | | limited number of investors and need a very large |
| making the investment decisions and the limited | | | | initial minimum investment. Investments made in |
| partners as the investors. These funds are | | | | hedge funds are illiquid since they require investors |
| subject to the same market rules and regulations | | | | to keep their money in the fund for a minimum |
| as any trader. They use advanced investment | | | | period of at least one year. Unlike mutual funds, |
| strategies such as leverage, long, short and | | | | hedge funds are unregulated since they cater to |
| derivative positions in both international and | | | | sophisticated investors. |
| domestic markets with the aim to generate high | | | | Investors should note that hedging is basically the |
| returns. | | | | practice of attempting to reduce risk, but the goal |
| Hedge funds are expected to offer profit | | | | of most hedge funds is to maximize return of |
| potential in both rising and falling markets. | | | | investment. Use of different strategies avoids |
| They are usually less highly regulated than | | | | hedging risks. |
| traditional funds. | | | | Hence it is evident that with better returns and |
| Prior to investing in this type of fund, it is vital to | | | | risk, hedge funds are superior to mutual funds |
| have a basic understanding of the characteristics | | | | and there are increasing amount of evidence that |
| of the different Hedge fund strategies. Our site, | | | | shows the benefits of considering hedge funds as |
| Wealth Capfund provides you all possible | | | | an asset class at the strategic asset allocation |
| strategies for a safe investment. | | | | level. |
| 1. Long/short or Hedged Equity Strategies: This is | | | | Hence investors should understand that the hedge |
| considered to be the largest category of hedge | | | | fund promise of pursuing absolute returns means |
| funds in terms of numbers. | | | | hedge funds are liberated with respect to |
| 2. Relative value strategy: These funds are often | | | | registration, investment positions, fee structure |
| considered as market neutral since there is little or | | | | and liquidity. Liquidity is the main concern for |
| no market related element to their returns. | | | | investors. So go ahead and invest for good |
| 3. Event Driven Strategy: It seeks to anticipate | | | | returns. |
| and profit from price movements that arise from | | | | |