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Tuesday, September 4, 2007

Financial Investments

Previously, investing in the hedge funds was only restricted to the individuals who are very rich or to any institution or any pension schemes. Small investors could not have any sort access with the hedge funds or the stock market. This has changed now as the small retail investors can invest with the hedge funds. The hedge funds attract the small retail investors because the hedge funds can make them money even when the markets are low. Small investors should also realize that hedge funds charge a relatively fat 2 percent annual management fee and take a 20 percent haircut on any market-beating performance and far above the annual management charges of about 1 percent for standard mutual funds, and no performance charge at all.

The small investors are having many other options to invest their money in. Mutual funds are the kind of financial instrument that when used properly with good planning can give good profits to the investors. Mutual funds are for the investors who do not have any knowledge about the different portfolios.

Stock markets as we all know are mainly meant for the people who have good knowledge and experience about the markets and who have a good risk taking attitude.

Whatever may be the type of investment we are making, we have to make our decision based upon many factors and for the people who do not have a good financial knowledge can make their decisions by meeting any financial consultants.
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