{"id":2639,"date":"2023-12-20T04:51:55","date_gmt":"2023-12-20T04:51:55","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=2639"},"modified":"2025-02-19T06:40:44","modified_gmt":"2025-02-19T06:40:44","slug":"decoding-hedge-funds-in-india-types-advantages-and-distinctions","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/","title":{"rendered":"Decoding Hedge Funds In India &#8211; Types, Advantages And Distinctions"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-large is-resized is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds.png\" alt=\"Hedge Fund\" class=\"wp-image-2658\" style=\"width:600px\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds-1024x576.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds-300x169.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds-768x432.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds-1536x864.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Hedge-Funds.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Hedge Funds are attractive, yet often misunderstood financial products. In our today\u2019s blog, we will learn about these funds and understand what place they hold in the investment landscape.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#What_are_Hedge_Funds\" title=\"What are Hedge Funds?\">What are Hedge Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Hedge_Funds_in_India\" title=\"Hedge Funds in India\">Hedge Funds in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Features_of_Hedge_Funds\" title=\"Features of Hedge Funds\">Features of Hedge Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Hedge_Funds_Strategies\" title=\"Hedge Funds Strategies:\">Hedge Funds Strategies:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Fee_Structure_of_Hedge_Funds\" title=\"Fee Structure of Hedge Funds\">Fee Structure of Hedge Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Difference_between_Mutual_Funds_and_Hedge_Funds\" title=\"Difference between Mutual Funds and Hedge Funds\">Difference between Mutual Funds and Hedge Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Benefits_of_Investing_in_Hedge_Funds\" title=\"Benefits of Investing in Hedge Funds\">Benefits of Investing in Hedge Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Demerits_of_Investing_in_Hedge_Funds\" title=\"Demerits of Investing in Hedge Funds:\">Demerits of Investing in Hedge Funds:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/decoding-hedge-funds-in-india-types-advantages-and-distinctions\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-are-hedge-funds\"><span class=\"ez-toc-section\" id=\"What_are_Hedge_Funds\"><\/span>What are Hedge Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hedge funds are investment funds that pool capital from high-net-worth individuals (HNIs) and institutional investors.<\/p>\n\n\n\n<p>These funds are managed by professional fund managers and deploy capital in complex products and strategies like listed and unlisted derivatives, real estate, convertible debt, etc. They have the potential to deliver significant returns but also carry significant risks.<\/p>\n\n\n\n<p>They play a significant role in portfolio diversification since they help in diversifying the portfolio and provide a chance to invest in complex strategies.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro.png\" alt=\"Decoding Hedge Funds In India - Types, Advantages And Distinctions\" class=\"wp-image-2643\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:376px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Statistics-bro.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hedge-funds-in-india\"><span class=\"ez-toc-section\" id=\"Hedge_Funds_in_India\"><\/span>Hedge Funds in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hedge Funds are considered as Alternate Investment Funds (AIFs) in India. As per SEBI, \u201cAIF is a privately pooled investment vehicle incorporated in India which collects funds from sophisticated investors, whether Indian or Foreign, for investing it in accordance with a defined investment policy for the benefit of its investors\u201d.<\/p>\n\n\n\n<p><strong>There are three categories of AIFs classified by SEBI:<\/strong><\/p>\n\n\n\n<p><strong>1. Category I AIF:<\/strong> Venture Capital Funds, Angel Fund, etc.<\/p>\n\n\n\n<p><strong>2. Category II AIF:<\/strong> Funds that do not fall in Category I and Category III.<\/p>\n\n\n\n<p><strong>3. Category III AIF:<\/strong> Hedge Funds<\/p>\n\n\n\n<p>Hedge funds fall in Category 3 AIFs. These funds are not pass-through entities and are taxed at the fund level. In other words, tax will be paid by the fund, and investors are not required to pay tax. However, this is generally less tax efficient as compared to other investment options.<\/p>\n\n\n\n<p>As per SEBI, there are 1,220 Alternative Investment Funds registered in India as of December 2023. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-features-of-hedge-funds\"><span class=\"ez-toc-section\" id=\"Features_of_Hedge_Funds\"><\/span>Features of Hedge Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. Hedge Funds can be registered as a trust, company, or LLP. Generally, partnership structure consists of General Partners and Limited Partners.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>General Partners (GPs): <\/strong>GPs actively manage the operations of the fund and also invest in it. They have unlimited liability.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited Partners (LPs): <\/strong>LPs are the investors that do not take participation in the management. Further, they have a limited liability.<\/li>\n<\/ul>\n\n\n\n<p>2. Hedge funds employ a plethora of strategies, including long and short positions, arbitrage, derivatives trading, etc. although they are flexible and can also invest in equity, currency, and commodities.<\/p>\n\n\n\n<p>3. Hedge funds try to generate alpha over benchmark returns, i.e., the main objective of hedge funds is to generate positive returns irrespective of the market conditions.<\/p>\n\n\n\n<p>4. Hedge funds carry high charges &amp; fees. These funds charge both management fees and a share of the investor\u2019s profit.<\/p>\n\n\n\n<p>5. Hedge Funds are generally targeted to sophisticated investors, i.e., HNIs, Institutional Investors, Family offices, etc. as the minimum investment amount is in crores. As per SEBI, the minimum amount to start investing in a Hedge fund is one crore, and the entire fund should have a corpus of at least INR 20 crs.<\/p>\n\n\n\n<p>6. Hedge Funds are less regulated as and when compared to mutual funds. Periodic disclosures of NAVs of hedge funds to SEBI are not mandatory. Further, there is no requirement for these funds to register with the Securities and Exchange Board of India (SEBI).<\/p>\n\n\n\n<p>7. Hedge funds have low liquidity, and investors may need to face lock-in periods. They can be open-ended or close-ended.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hedge-funds-strategies\"><span class=\"ez-toc-section\" id=\"Hedge_Funds_Strategies\"><\/span>Hedge Funds Strategies:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hedge Funds are generally classified by strategies. Such strategies change over time when new strategies are introduced in the market. There are four broader hedge fund strategies:<\/p>\n\n\n\n<p><strong>1. Equity Hedge<\/strong> \u2013 They focus on equity and equity related instruments. These funds focus on both long and short positions. Equity Hedge includes strategies such as Market Neutral, Fundamental Value, Sector specific, etc.<\/p>\n\n\n\n<p><strong>2. Event Driven \u2013 <\/strong>Event Driven strategies focus on generating profits from certain corporate actions. These include strategies like Merger Arbitrage, Special Situations, etc.<\/p>\n\n\n\n<p><strong>2. Relative Value<\/strong> \u2013 These funds capitalise on pricing differences in the market and try to generate profits from relative price movements. These include Volatility trading, Multi Strategy, Fixed Income, etc.<\/p>\n\n\n\n<p><strong>4. Macro Strategies:<\/strong> These funds follow a top-down approach to identify various macro events such as economic activities, interest rates, fluctuation in currencies, etc.<\/p>\n\n\n\n<p>There are also Fund of Hedge Funds (FoHF), which are similar to Fund of Funds (FoF). These funds invest in a diversified portfolio of multiple hedge funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-fee-structure-of-hedge-funds\"><span class=\"ez-toc-section\" id=\"Fee_Structure_of_Hedge_Funds\"><\/span>Fee Structure of Hedge Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here is a breakdown of the fee structure:<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-1-management-fees\">1. Management Fees<\/h3>\n\n\n\n<p>Management fees range from 1-2% and are charged irrespective of the fund\u2019s performance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-2-performance-fees\">2. Performance Fees<\/h3>\n\n\n\n<p>Performance fees are a percentage of the fund\u2019s profit and are generally around 20%<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-3-hurdle-rate\">3. Hurdle Rate<\/h3>\n\n\n\n<p>It is a pre-decided minimum level of return that the fund needs to achieve before the performance fee is charged. It can be of multiple types: Soft hurdle, Hard hurdle, or Blended Hurdle.<\/p>\n\n\n\n<p>Apart from these, hedge funds may charge transaction costs from investors. The above-mentioned fee structure can change depending on the type of hedge fund. It is suggested for the investors to carefully review and analyse the fee structure before investing.<\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/a-comprehensive-guide-on-mutual-fund-analysis-quantitative-and-qualitative-factors-explained\/\">A Comprehensive Guide on Mutual Fund Analysis<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-difference-between-mutual-funds-and-hedge-funds\"><span class=\"ez-toc-section\" id=\"Difference_between_Mutual_Funds_and_Hedge_Funds\"><\/span>Difference between Mutual Funds and Hedge Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Investors with low capital can also invest in mutual funds, whereas investments in hedge funds are allowed only for HNI and institutional investors as the minimum investment amount is in crores.<\/li>\n\n\n\n<li>Mutual funds are subject to stricter regulations and disclosure requirements about investments as compared to hedge funds. Hedge funds are less regulated and riskier than mutual funds.<\/li>\n\n\n\n<li>Mutual fund is suitable for investors who seek long-term growth and lesser risk and hedge funds are meant for investors who have a high-risk appetite.<\/li>\n\n\n\n<li>Mutual funds do not charge any fees on profits earned by investors whereas, in the case of hedge funds, fund managers can ask for a share in the profits of the investors.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-investing-in-hedge-funds\"><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_Hedge_Funds\"><\/span>Benefits of Investing in Hedge Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1.png\" alt=\"Benefits of Hedge Funds \" class=\"wp-image-2523\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:363px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2023\/12\/Stay-Positive-rafiki-1.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Diversification:<\/strong> Hedge funds allow diversification that can reduce the overall risk of the portfolio. Hedge fund returns may not move in sync with stock or bond markets, potentially offering greater diversification and stability.<\/li>\n\n\n\n<li><strong>Returns:<\/strong> Hedge funds aim to generate good returns irrespective of the prevailing trends in the market.<\/li>\n\n\n\n<li><strong>Professionally Managed:<\/strong> They are professionally managed. Fund managers earn performance fees from the investors. This encourages them to strive for strong and better performance.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-demerits-of-investing-in-hedge-funds\"><span class=\"ez-toc-section\" id=\"Demerits_of_Investing_in_Hedge_Funds\"><\/span>Demerits of Investing in Hedge Funds:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. <strong>Not transparent:<\/strong> Hedge Funds operate in a less regulated world and are not obliged to issue performance reports, portfolio holdings, etc. Further, they are not allowed to advertise in India.<\/p>\n\n\n\n<p>2. <strong>Not for all:<\/strong> As discussed above, hedge funds deploy capital in complex strategies and carry higher risk as compared to other investment options. Further, the minimum investment amount is generally in crores, whereas in other investment options like Mutual funds, you can invest from as low as INR 100.<\/p>\n\n\n\n<p>3. <strong>Expensive:<\/strong> Hedge Funds are substantially more expensive than traditional investments and may not be tax efficient as compared to other investment options. <\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/decoding-credit-risk-funds-in-india\/\">Decoding Credit Risk Funds In India<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On a parting note, hedge funds appeal to investors who seek high returns from the financial markets. Even though they are not meant for every investor out there, these funds still hold a unique and powerful place in the financial world. Understanding their strengths, weaknesses, and proper due diligence is important for investors before considering them as an investment option.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Can hedge funds advertise in India?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">No, as per SEBI, AIFs are privately pooled investments that raise funds via private placement only.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Hedge Funds fall under which category of AIF<\/strong><\/h3><p class=\"saswp-faq-answer-text\">Hedge funds are Category III AIF.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What is the most common fee structure charged by hedge funds?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">Most Hedge Funds follow 2 \/ 20 structure means a 2% management fee and 20% performance fee.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Is NAV disclosure mandatory for hedge funds?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">No, NAV disclosure is not mandatory for hedge funds.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>Are Hedge funds more regulated than mutual funds?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">No, hedge funds are comparatively less regulated than mutual funds.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Hedge Funds are attractive, yet often misunderstood financial products. In our today\u2019s blog, we will learn about these funds and understand what place they hold in the investment landscape. What are Hedge Funds? Hedge funds are investment funds that pool capital from high-net-worth individuals (HNIs) and institutional investors. These funds are managed by professional fund [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2642,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[15,18],"tags":[],"class_list":["post-2639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","category-personal-finance"],"acf":{"freelancer":"Kavya Mehrotra"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Decoding Hedge Funds In India - Types, Advantages And Distinctions - Pocketful<\/title>\n<meta name=\"description\" content=\"What are hedge funds? Are they a suitable choice for you? 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