What is Hedge Fund

Hedge funds are pools of capital managed by professionals seeking to maximize returns on assets. To make a profit, they use various, including complex and risky strategies. This type of fund is only available to wealthy and accredited investors, as it requires significant initial investments.

Hedge funds are a profitable financial instrument for large investors seeking to maximize income with an acceptable level of risk.

How does a hedge fund work? They attract investors' funds using various methods, develop effective strategies, form an investment portfolio, and manage risks efficiently. Hedge funds offer numerous opportunities for employing complex, aggressive, and flexible strategies. Taking into account how they work, the achievement of the set goals and the receipt of the highest possible income depends.

How do hedge funds make money? Hedge funds charge fees for asset management. As a rule, they amount to 2% of assets under management and up to 20% of the profit received.