Quick Wealth Network

How can I start investing into hedge funds and into emerging markets funds.?

Hedge funds and emerging masrkets funds are booming these days, how can i start investing my money into these markets and funds.

Public Comments

1. You can't directly invest into hedge funds unless you are considered a "qualified investor" as defined by SEC. This usually means assets of $1 million and a salary over $200k a year, but you can invest in emerging market funds. Check out an emerging market small cap, value, and/or growth fund. They are still in the uptrend right now so returns are good, just be sure to diversify depending on your age. I have an emerging markets value fund that did more than 40% return last year, but the risk is greater of course. But since the US stock market had been haywire as of late they are currently not much risker than US large cap stocks in my opinion. Look at the Vanguard funds, they have some good index funds.
2. The first answer is correct about needing to be qualified. I not sure where you heard hedge funds are booming though. Hedge funds are collapsing left and right because so many of them jumped on the secondary mortgage bandwagon.
3. There are many Mutual Funds with the concept of Hedging available in India. Also emerging Market Funds are also there in India.The New Fund Offer of ICICI-Pru Indo Asia Equity fund is also a emeging market fund. Visit my website as in source for more.
4. If you want to invest in a hedge fund you have to have at least $1,000,000. Do you have that? Didn't think so. Emerging Market funds however are much cheaper and easier to invest in. One that I currently have invested in is the Vanguard Emerging Market fund. The ticker symbol is VWO.
5. You can create your own hedging strategy. It depends on what you are hedging against. It is the US stock market? Buy Zero coupon treasury bonds and then utilize an option straddle on the S&P 500 Index.