Monday 5 January 2009

Why Invest in Hedge Funds

Hedge funds are expected to offer profit potential in both rising and falling markets.

They are usually less highly regulated than traditional funds.

Prior to investing in this type of fund, it is vital to have a basic understanding of the characteristics of the different Hedge fund strategies. Our site, Wealth Capfund provides you all possible strategies for a safe investment.

1. Long/short or Hedged Equity Strategies: This is considered to be the largest category of hedge funds in terms of numbers.

2. Relative value strategy: These funds are often considered as market neutral since there is little or no market related element to their returns.

3. Event Driven Strategy: It seeks to anticipate and profit from price movements that arise from specific corporate events, such as take over and mergers.

4. Tactical Trading Strategy: These are the highest risk of all hedge funds as a sector.

These strategies are not as easily accessible. Most often, hedge funds are set up as private investment partnerships legally that are open to a limited number of investors and need a very large initial minimum investment. Investments made in hedge funds are illiquid since they require investors to keep their money in the fund for a minimum period of at least one year. Unlike mutual funds, hedge funds are unregulated since they cater to sophisticated investors.

[ForexGen Money Manager]

An individual who is responsible for the entire financial portfolio of another individual or another entity. A money manager receives payment in exchange for choosing and monitoring appropriate investments for the client.

Benefits of being a Money Manager with [ForexGen]:

* Providing three different commission sources.
* Weekly commission plan.
* Easy & fast commission withdrawals.
* Fixed percentage of the profits.
* P = k * D “P=Profit, k=Variable Parameter, D=Deposits”

The money manager gets a fixed percentage of the profit previously agreed upon with the client for managing the client funds as a bonus feature.

The most competitive trading conditions:

* 2 pips spread on six currency pairs.
* Providing online trading services without maintenance margin, margin call and no automatic closing of positions below the initial margin on weekdays for accounts with initial equity of up to $1 million US. The margin level have to be recognized Fridays at 23:00 CET and before public holidays.
* Leverages up to 1:200 for accounts up to $1 million US.
* Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.

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