“HEDGE FUNDS- THE INVSETMENT ALTERNATIVE FOR INSTITUTIONAL INVESTORS AND THE ADVENT ON THE RETAIL

MARKET”

BY: RIYA JAINA1802012348

INTRODUCTION

• Hedge funds are pooled investment scheme subject to less regulatory restriction on the use of leverage, short selling and derivatives than the other regulated investment vehicles

• In particular, the investment vehicles accessible to retail investor are permitted to invest in hedge fund. Institutional investors are just what the name implies: large institutions, such as banks, insurance companies, pension funds, mutual funds, and exchange-traded funds (ETFs),that buy and sell securities for their investment portfolios.

OBJECTIVES OF THE STUDY:

• Understanding Hedge funds conceptually.• Studying the various types of hedge funds.• To make a depth study of the hedge funds

indices.• Studying the difference between Mutual

Funds and Hedge Funds.• Understanding the effect on the retail market.

RESEARCH METHODOLOGY

RESEARCH OBJECTIVES:• To study the investment alternative via hedge funds.• Comparative study of hedge funds i.e Global funds and

Equity hedge funds.• Understanding the effect on retail market.

DATA COLLECTION:• In this study, majorly secondary sources will be used to

collect data and establish the points of concern (Secondary sources: internet, research papers, news articles etc.).

RESEARCH DESIGN:• The research is going to be descriptive, as it

will explain the Hedge Funds- The Investment Alternative For Institutional Investors And The Advent On The Retail Market.

TOOLS AND TECHNIQUES:• Tabulation of Hedge Funds on the basis of

daily, monthly and historical performances.

RECOMMENDATIONS

• Hedge Funds allow the investors to establish investment strategies that are dramatically different from the traditional long-only strategy used by the traditional vehicles like mutual funds.

• The retail investors are now able, in some case to access in the alternative asset. In many jurisdiction, where the direct retail participation in a hedge fund is prohibited, there are not rule about the indirect participation.

• In particular, the investment vehicles accessible to retail investor are permitted to invest in hedge fund. Institutional investors are just what the name implies: large institutions, such as banks, insurance companies, pension funds, mutual funds, and exchange-traded funds (ETFs) that buy and sell securities for their investment portfolios.

CONCLUSION

• The Hedge Fund Index is a measure of the average return of all hedge funds (excepting Funds of Funds) in the database.

• Thus we conclude that the retail investors are now able, in some case to access in the alternative asset. In many jurisdiction, where the direct retail participation in a hedge fund is prohibited, there are not rule about the indirect participation. In particular, the investment vehicles accessible to retail investor are permitted to invest in hedge fund.

• By 2015, retail alternative investments are expected to account for one-quarter of revenues and a majority of revenue growth.

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