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Hedge Funds India

Hedge Funds in India are among relatively new investment opportunities. The hedge funds history actually dates back to 1949 with credit to Alfred Winslow Jones for inventing hedge funds investing fund. These are a form of private investment funds at the cost of a performance fee and open to only a limited investors group. Hedge funds in US are open to only a few accredited investors. These hedge funds basics qualify them to be exempted from direct regulations of the state.

Hedge Funds Definition

Hedge funds definition says these funds are meant to hedge the investment through various techniques from the potential fluctuations in terms of losses in the markets.The hedge fund returns do net get affected by the direction of the underlying market.This type of hedge funds accounting is achieved by:

  • Investing in the safer areas that are less likely to be affected by drop in markets

  • Marketing through derivative methods as opposed to direct market exposure

  • Holding defensive instruments like cash in times of market failure

  • By taking short as well as long market positions and negating the market exposure

Hedge funds jobs include the services of a hedge fund manager who charges a performance fee normally 1% or 2% and management of the various hedge funds investment strategies. The hedge fund managers have increased in numbers since the use of their skills is maximized in terms of returns for the investors as well as the hedge fund managers due to the regulations free accounting of hedge funds.

Hedge Fund in India

The hedge fund strategies include a lot of assets and are thus defined clearly and with utmost care. Hedge funds were demystified in the Indian markets only recently when the market opened up to newer investment opportunities. The hedge funds database is managed regularly to keep track of the investment patterns of the market.

Hedge funds explained the growth of short positions in the markets. The market failures do not affect hedge fund investors and hedge fund managers due to the liquidity leverage they bring. The hedge fund manager or administrator acts as an analyst keeping track of the hedge funds news, bonus returns, quotes, valuations and returns. The hedge fund statistics include a careful research on all these factors to avoid any kind of fraud in the valuations.

Hedge funds in also available in forms like hedge fund ETF and hedge funds real estate.Hedge funds ETF is a form of mutual fund that offers more flexibility and for real estate hedge funds, these offer investment opportunities in real estate markets with higher liquidity. The hedge fund investor is determined on the basis of the NAV (Net Asset Value) of the company or their businesses.

Being an extremely complicated investment solution, hedge fund employment is limited with only the privileged ones having the optimum hedge fund education get the opportunity to serve as hedge funds managers. The bonus and perks of the industry are also innumerable. Since the hedge funds are basically a product for the richest of the rich who wish to remain rich with no direct effects from the crash of the local market, the hedge fund managers are amongst the most well paid in the industry.