By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Let's Think WiseLet's Think WiseLet's Think Wise
  • Home
  • Featured
  • Demat account
  • Terminology
  • Stock Recommendation Apps
Reading: What are Hedge Funds?
Share
Notification
Font ResizerAa
Let's Think WiseLet's Think Wise
Font ResizerAa
  • Home
  • Featured
  • Demat account
  • Terminology
  • Stock Recommendation Apps
Search
  • Home
  • Featured
  • Demat account
  • Terminology
  • Stock Recommendation Apps
Follow US
Open Free Demat account (₹0 AMC Lifetime)
Let's Think Wise > old-Blog > Terminology > What are Hedge Funds?
Terminology

What are Hedge Funds?

Arup
By Arup Terminology 20 Views 1 year ago 1 Min Read
Share
What are Hedge Funds?
SHARE

When word is broken down, a Hedge Fund is made up of two words: hedge, which means “to protect money,” and fund, which means “to invest.”

‘A pool of money’ refers to a pool to protect your money.

This definition, on the other hand, only applied in the early days of its existence.

Hedge Funds’ trading technique has evolved throughout time, becoming riskier and more aggressive as they began to trade both buying and selling the market.

Hedging

Hedging is a risk-management technique for financial assets.

A diversified portfolio is a typical and simple method of hedging.

When you have a diversified portfolio, you minimise the chances of taking a big blow during a loss-making event.

Finally, while hedging might help you decrease your risks, it also lowers your profits.

A hedge fund is not regulated in the same way that traditional mutual funds are. The stakes are higher, as is the reward. However, there are also significant losses on the downside.

Unless you are a certified investor, you cannot invest in a hedge fund.

Hedge funds use a lot of leverage to invest their clients’ money.

What are Hedge Funds?
What are Hedge Funds?

Get Latest Financial Tips & Tricks

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Whatsapp Whatsapp Copy Link
What do you think?
Love0
Happy0
Joy0
Surprise0
Sad0
Angry0
Wink0

You Might Also Like

Different types of Equity funds
Terminology

Different types of Equity funds

By Arup 8 Min Read
What is Gini Coefficient or Gini index
Terminology

What is Gini Coefficient or Gini index

By Ajay Bohra 1 Min Read
What is the Multi Commodity Exchange (MCX)?
Terminology

What is the Multi Commodity Exchange (MCX)?

By Ajay Bohra 1 Min Read
Tradingview
FEATURED

Get Tradingview premium free

A free version of TradingView Premium is available, which gives users access…

By Ajay Bohra 8 Min Read
tejimandi referral code
Demat account

Teji Mandi referral code is ‘0AeznYXQ’

Teji Mandi is a new online platform that helps people invest in…

By Ajay Bohra 14 Min Read
Indmoney Vs Zerodha Charges
FEATURED

Indmoney Vs Zerodha Charges

Indmoney vs Zerodha charges, which offers more value? Online trading platforms have…

By Ajay Bohra 19 Min Read
- Advertisement -
Vested vs Indmoney
  • Home
  • Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Contact
Reading: What are Hedge Funds?
Share

Follow Us

FACEBOOK
QUORA
INSTAGRAM
TWITTER
Tumbler
PINTEREST
RSS
© 2023 Let’s Think Wise. All Rights Reserved.
  • Home
  • Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Contact
lets think wise .com logo
Welcome Back!

Sign in to your account

Lost your password?