Hedge Fund is a fund which involves a selected range of investors who invest their money directly or indirectly in shares, bonds and commodities, thereby getting better return on their investment in a way such that the capital is preserved and the return is positive. The investors pay a due amount as performance fee to their investment manager who invests the money. The top hedge funds almost guaranty good returns or high profit. According to the latest information, the average return on it is about 5.2 percent in May, which is thought about the best hedge fund giving its best performance in span of about nine years by attracting more funds and better investors globally. Hedge fund reduces your risk factor and simultaneously gives you better return. As per hedge fund industry news, money climbed to 9.2 percent this year. This industry recorded a profit of 1.5 billion dollars. The top and best hedge manage 1.3 trillion dollars as per the recent document. After going through an undesirable financial crisis, these will be recovered at a great pace. They are attracting more investors and giving better and higher gain on investment.

After the extreme financial crisis, plenty of it underwent a immense loss. Large number of firms have even been out of business. But that industry is recovering at a pleasant rate. The recent document showed that this industry is blooming with the largest of it is becoming even bigger. The largest and best of it saw a combined 309 billion dollars as of January which is 15 percent higher than last year. So that is a huge positive trend for the hedge funds. The market is good enough to invest as the funds are responding to demands.

The hedge funds are the safest way to invest. There is no risk involved as the fund is managed by experts and finance persons. The profit is generally large as the funds are invested carefully by the experts. The fund is invested in such a way that there is only profit and no chance of any loss. It is type of a joint investment in which investors put in money for joint benefit. Many times the hedge fund is restricted to few persons. The fund is open only to elite few or the priviledged few who participate in the process. There is a limit to who can invest and who can not. All the process is managed by the fund manager who is paid a definite sum of the total profit incurred.

Author's Bio: 

The author is associated with hedge fund industry news. He is an expert in Hedge fund.