Hedge fund - investment features.
Those who have had an account in a foreign bank probably know how low interest rates are offered there on deposits, on average it is
only 1% per year, and more often the amount is even less, so foreign investors have no choice but to look for alternative objects for investing money.
A hedge fund is an investment company that accepts client money and invests it in various types of highly profitable assets (stocks, bonds, currencies, precious metals, futures contracts, etc.).
An example of such a fund is Soros Fund Management LLC, created by George Soros, who until recently was actively involved in stock market speculation and accumulated billions of investor money. A person who has learned to make money on the stock exchange attracts money from investors to increase working capital, because it makes no difference whether to trade millions or billions. the trading strategy remains the same.
The operating scheme of such companies is quite simple:
• The client chooses the investment portfolio .
• Deposits money.
• Fund - buys or sells assets included in this portfolio and makes a profit through these operations.
• At the end of the reporting period (month), the client receives an agreed percentage of the profit.
Hedge fund returns typically range from 10 to 60 percent per year, which is significantly more profitable than a bank deposit of 1 percent.
But this is mainly abroad, but here we have a completely different situation. Studying the offers of companies proudly calling themselves Hedge Funds on the Russian market, I was unpleasantly surprised, since most of them turned out to be simply financial pyramids.
The main features of such pyramids are an intricate system that involves building a ladder depending on the place on which the investor’s profit depends, the intrusive and aggressive behavior of employees, and sometimes investors like you who want to make you their referral.
Safer at the moment are investment programs conducted by well-known brokerage companies, such as Alpari or Aforex . Investments take place according to the classical scheme adopted in the West; it is clear that there are some risks here, but most often they are limited to a decrease in profitability in the reporting period.