A long-short fund is a type of hedge fund that takes both long and short positions in investment, typically from a specific market segment. These funds sometimes use several alternative investing techniques such as derivatives, leverage and short position to buy undervalued securities and sell overvalues securities.
In general, long-short funds generally seek to enhance the
returns from investing in specific market segments.
Long-short funds mostly take long and short positions in securities to
maximize profit. The long short-funds are
very risky and very active management portfolios. To maximize the profit it may
also use leverage, derivatives, and short positions which can increase the
risks of the fund as well as the fund's potential total return. Long-short funds are similar to hedge funds or
mutual funds but are riskier than both, and it has higher liquidity than most
hedge fund and mutual funds. Long short funds are
more closely regulated than hedge funds due to this it has limitations on the
use of leverage and derivatives, but this is not applicable for hedge funds
ESG funds in
India, are the investment product that should contain only those securities
whose business does not affect the environment or damage the environment. ESG funds in India or anywhere else have only
those securities in it which do not harm the environment and do not produce any
kind of pollution to nature. Survey has shown that the use of ESG in security
selection leads to a better wise decision. These funds perform better than
non-sustainable funds because of better risk management over contentious
issues. The ESG funds in India are very
new in concept, but they get attention very quickly. Because ESG funds in India have only securities that
do not damage the environment in any manner and due to this fact it gives a
good impression to the investor.
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