Investors all over the globe create funds and funds employ a wide range of strategies but classifying them is difficult due to the rapidity with which they change and evolve. However fund strategies can generally be categorized into four main parts. They are global macro, directional, event-driven, and relative value. All these are distinguished by the way we invest and each of them are with their own risk and return characteristics. Managed futures or multi-strategy funds may not fit into these categories, but they are, nonetheless popular strategies with investors. It is possible for such funds to commit to a certain strategy or employ multiple strategies to allow flexibility for risk management purposes or to achieve diversified returns. The elements contributing to fund strategy include: the fund’s approach to the market; the popular investment used; the market sector the fund specializes in; the method used to select investments and the amount of diversification within the fund. Instruments used include: equities, fixed income, futures, options and swaps. Strategies can be divided into those in which investments can be selected by managers, known as ’discretionary/qualitative’, or those in which investments are selected using a computerized system, known as ’systematic/quantitative’. The amount of diversification within the fund can vary; funds may be multi-strategy, multi fund, multi-market, multi-manager or a combination. online work|online job|online income|home jobs|online jobs for students|typing jobs|home business|part time job|home based businesses investment.
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