Question

In choosing between investment in an international mutual fund and investment in an international hedge fund, what are your considerations?

Answer 1

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The considerations are:

When you look to invest in International mutual funds and International hedge funds the focus should be understanding the cost of the hedge funds, risk related to international market and previous years performance. The investment should be made taking wise decisions. The mutual fund costs are normally less than hedge funds then the focus should be how had that mutual fund performed in the last 5 or 6 years on the risk adjusted basis. In the hedge fund the costs are higher than the mutual funds so you have to look at has how the hedge fund has performed after adjusting for fee in comparison with risk adjusted returns. The international markets are risky so there also one has to be careful.