Hedge funds ?

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  1. Nikil Mohan

    Nikil Mohan Member

    Sir, How Hedge funds operate ? Do they pay dividends ?

    Thanks in Advance.
  2. Chandrashekar M

    Chandrashekar M Active Member

    How Hedge Funds Operate

    A hedge funds collects money from a pool of accredited investors and then uses that money to chase large returns by seeking out nontraditional investment opportunities. Hedge fund investments are typically high-risk, high-reward. Not just anyone can invest in ahedge fund; the minimum investment is often quite large, and hedge fund investments are illiquid, most requiring at least a one-year commitment of funds. While accredited investors share in the fund's profits, which are often substantial, they rarely, if ever, receive dividends.

    Most hedge funds are not publicly traded. In fact, one reason hedge fund investors gravitate to them is that they are not subject to the regulations and disclosures of publicly traded firms. That said, a few hedge funds are public, which opens them up to investment by anyone in the

    Do hedge funds pay dividends?

    Hedge funds rarely paydividendsto the accredited investors who invest directly in them. Instead, these investors share in the profits and losses of the funds. A handful of hedge funds are publicly traded, which means any stock market investor, not just accredited ones, can purchase ownership shares. Of these funds, an even fewer number pay dividends, but a few exist that pay consistent and handsome dividend yields.

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