Unfortunately, the Czech public’s perception of the meaning of the term hedge fund is unfortunately shaped by distorted information from some copper. The relatively low number of classic hedge fund managers in the Czech Republic is limited by the awareness of this type of investment.
Hedge funds are, simply put, private-type funds for individuals who are professionally engaged in the active investment funds of their clients and clients. In the Czech environment, the closest to hedge funds are the so-called special funds of qualified investors, this concept has been regulated by the collective investment company since last year.
Hedge funds differ from classic mutual funds mainly in that the regulatory authorities do not limit the space for their investments, which leads to high flexibility of investment strategies. This flexibility is significantly higher than with classic mutual funds, which have a strictly limited range of usable investment instruments. Thanks to this, hedge funds, in contrast to classic funds designed for small items, are mainly exchanged for mobile clients.
The first mover investor stands behind the fund’s establishment and thus based on the formulation of the investment strategy. The relatively high volume of the minimum investment in a hedge fund presupposes the participation of “conscious” investors who are able to assess the quality of the hedge fund manager and responsibly increase the risk associated with investing in its product.
When we mention risk, it is important to realize that as a self-regulating hedge fund mechanism, the fact that fund managers usually invest a known amount of their own resources in their chosen strategy.
Who made me at R stt a hedge fund client?
Hedge funds are a relatively new and promising field in the Czech Republic. Interest in it is developing rapidly in a situation where you and the middle class of the population increase their wealth and think about the location of acquired pensions in an effective way.
The client of the hedge fund can be a natural person qualified investor or the first person a professional investor. According to the Czech first term, a qualified investor is a person who has experience in trading in securities and supports the fund manager in this sense. The precondition for joining the fund is the minimum investment required by the fund’s articles of association, which is determined by the country of the fund, most often around 100 thousand USD.
Abroad, the conditions for entry into the hedge fund included a minimum size of the client’s wealth or income. For Czech practice, it can be stated that the client’s investment in a hedge fund should not represent a decisive factor in the client’s total assets. 20 percent of its total assets, including the value of the property, are generally considered to be liable.
The estimation of the riskiness of the strategy of the selected fund and its expected investment horizon will help to determine the exact determination corresponding to the investment in the total assets of the client.
Before actually investing in a hedge fund, the potential client should in particular obtain information about the fund’s manager, its investment strategies used, ways to diversify investment risk and setting the entry and entry parameters from the fund. In addition to the possible return and risk, the client’s investment horizon plays an important role in the investment weights, which, for example, should not interfere with other expected significant life decisions of the client when investing in a fund with a long-term strategy.
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