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Funds, Bonds & Hedge Funds
#1
Funds assessment factors:
  • Performance over three and five years
  • Volatility over three years
  • Expenses ratio
  • Fund size
  • Asset allocation
  • Face value - returning the original value of bond
  • Coupon - fixed interest
  • Maturity - long the maturity, higher the interest
Why buy funds:
  • Funds with excellence track record
  • Funds with lower expenses ratio
  • Examine current trend
  • Diversify globally
Why sell funds:
  • You need the money
  • Reached your objective
  • Fund is underperformance
  • Drastic change in fund size
  • Fund manager leaves
  • Rebalance portfolio
Type of bonds:
  • Corporate bond - limited interest
  • Government bond - mature 1-15 years
  • Secured bond - backed up by assets (e.g. mortgages)
  • Unsecured bond - backed up only the issuer
  • Floating rate bond - coupon interest adjusted to market
  • Zep coupon bond - no coupon interest and discounted
  • Callable bond - issuer can get back the bond anytime
  • High yield bond - pays higher interest rate but risker
Why hedge fund investments:
  • MAS - nontraditional investment strategies such as leverage, short selling and arbitrage are used or investment are in non-mainstream assets classes, that is, investments other than listed equities, bond and cash
  • Short selling - sell thins you do not have yet
  • Convertible arbitrage - exploit securities and bonds
  • Dedicated short bias - net short
  • Emerging market
  • Equity market neutral - beta neutral
  • Event driven - distress securities, high-yield debt and risk arbitrage
  • Global macro - macroeconomic
  • Long-short equity - directional equity  / equity derivative
  • Managed futures - driven by technical or market analysis
  • Multi strategy
Type of hedge funds:
  • Simple strategy fund - only 1 fund, if it fails the entire fund lose money. $100k minimum
  • Fund of funds - diversify of funds, need to pay additional charges for other fund managers, $20k minimum
  • Guaranteed hedge fund - have maturity date, no liquidity
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#2
Thanks for sharing this post..!!
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#3
what about the type of Funds?
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#4
thats a good one...!!!
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#5
Thanks for the post.......
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#6
So many to choose from, so hard to decide.

It is the same when I go to the restaurant flipping and flipping until I decided to ask for recommendation.
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