Alternative Strategies Regarding Funds Allocation

Li-li DONG


Hedging is an important tool that helps in increasing the quality of the investment and enhances the ability of the investor to mitigate the chances of risk associated with such transactions. Investing the allocated fund in a portfolio of minimum risk and high return is important for a hedge fund manager with investment of fund into different financial instruments including stocks, bonds, shares, mutual funds, and/or cash among others. The fund manager often plans the portfolio that minimizes the risk associated with an investment by distributing the risk over a range of assets. This not only protects the investor from the risk with investment but also enhances the chances of attaining adequate return.


Hedging, Portfolio, Average return, RELTs.


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