Investment Finance

Investment finance Hedge Funds, are well known in the UK, they are alternative financial investment funds and somehow different to what other people uses in other countries, like Spain just to pun an example. Many are branded as hedge funds, they are dangerous, and that only experienced investors should work on. Let’s now see how this is not entirely true.

"Simple” Investment funds that we’re used to fallow in our country are investment managed by an entity, usually this entity is a bank, based on stock shares from all over the world. That’s why we see investment funds based on the IBEX (Spain), Nikkei (Japan), NASDAQ (USA), emerging countries, and so on. These investment finance funds are intended to achieve a higher return than the benchmark on which they operate and their management is normally quite passive.

What do we mean by investment finance passive management? Well this means that the entities are not overly concerned for the customers to get the maximum benefit, since they only charge a commission to manage that capital, not to make it profitable. Therefore they operate loosely and they just follow the indices.

However investment finance Hedge Funds are investment funds where the companies that manage them do not charge a commission for handling the money, they charge a percentage of the client benefits. So their effort is focused on maximizing the benefit.