Hedge Fund

Consult wikipedia.

>>1272910
In the long run, don't even bother. If you are looking past a 5 year timeline, 2/3 of hedge funds are outperformed by index funds like on the S&P 500. They might have a few hot years but eventually whatever trick they use doesn't continue to work, as markets are constantly changing but an index fund literally grows as America grows. you'll get about 2% a year but like I said, its better than 2/3 of hedge funds in the long run.

Try crowdfunding and check out:

https://ufundingportal.com

>>1272998
Hedge funds aren't around to make mad gains, they exist to protect against a bear market. Hence the word "hedge"

Fucking mongloids

>>1272998
>look at me, I read something on /pol/

>>1272910
>> What is it?
An investment fund run by professional investment managers.

>> How do they work?
They pool money from investors and invest it consistent with the goals of the fund.

>> Which is best?
No such thing. They're all bad compared to index investing.

>> How can I get my money in one?
You can't. They would only accept money from individuals who are accredited investors, or else they have to comply with costly regulations. You are not an accredited investor.

There are "tracking" investments that attempt to mimic some hedge funds that are open to the public. But you'd be stupid to do this (see above).

>> Can the money be made available quickly in case of an emergency?
No. You are contractually committed to invest your money for the term of the fund. There may be limited opportunities to withdraw some or all of your investment, but they are highly illiquid in general.

>>1273025
Most hedge funds don't hedge and haven't for decades. The goal of most funds is growth, or growth and income. Very, very few actually seek low beta or inverse correlation. Fucking mongoloid.

>>1273039
He's actually being generous because the real percentage of under-performing hedge funds is actually in the 90-95% range, after fees. Next time, shut your mouth and listen to what reasonable posters tell you.

>>1273025
You spelled mongoloid wrong. And still, no matter what they exist to do, their purpose is irrelevant to the fact that most of them get outperformed by an index stock, making that 2/3 in the business just market waste.

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>>1272910
If you need asking those questions, they're definitely not the right asset class for you.

A simple google search would have let you find this:

>Regulation D, specifically rules 504, 505 and 506, limit the total number of investors who can be admitted inside of a hedge fund. Hedge fund general partners and managers often create high minimum investment requirements. It is not uncommon for a hedge fund to require at least $100,000 or even as much as $1 million to participate.

>Unlike mutual funds, hedge funds avoid many of the regulations and requirements within the Securities Act of 1933. In exchange, the Securities and Exchange Commission (SEC) requires a majority of hedge fund investors to be accredited, which means possessing a net worth of more than $1 million and a sophisticated understanding of personal finance, investing and trading. These requirements exclude the vast majority of the investing public.

Read more: Can you invest in hedge funds? | Investopedia

http://www.investopedia.com/ask/answers/011915/can-you-invest-hedge-funds.asp#ixzz49xp0eeB8

Okay, I guess the consensus is that Hedge Funds are out.

> What's a Mutual fund?
> What's an Index fund?
> Can I my money straight into the S&P 500 then?

I'm sitting on $15k, $5k of which I would like to invest for the semi long term 6-7ish years

>>1273116
An index fund is, essentially, a stock that is a slice of pretty much the entire market. For example, S&P 500 is a slice of stock from the largest 500 companies that are publicly traded. This is great to know about because if you leave your money in the bank, which has virtually no interest, you are literally losing money. Here's why:

Consider, for the sake of example, that the US economy grows at 5% (its actually close to 2% most of the time). IF an economy grew at this rate and your investments grew at the same rate, and if it is isn't compounding, then the entire economy and your money would double in 20 years (5% x 20 yrs = 100% growth). So, because money is generally compounding, you would have double the money you had within 20 years (probably around 17 yrs, there are basic equations for this) if your investments matched the overall market. HOWEVER, if you had stored your money under your bed, or kept it at a ridiculously low interest rate in the bank, as is the case today, you would have half the monetary power in 20 years than you do now. This is why index funds and investing in securities in general is so important. If you do not participate, or pay someone to participate for you, you literally lose money.

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>>1273116
Also
> Can I use VanGuard for any of these? Which is the best for my goals?

>>1273191
I have a lot of friends that have opened a Vanguard S&P 500 account to follow the market as I described above so yes you can totally use that. I am not sure of the level of liquidity of these accounts but that's something they'll tell you.

>>1273193
What about Index Funds in a Roth IRA?

>>1273203
I don't know the difference between Roth and Vanguard accounts, but you can definitely google that.

>>1273116
> What's a Mutual fund?
A mutual fund is a pool of money invested in a number of different assets. The idea is that it's easier to invest in a fund run by a qualified manager than it is to manage your investments personally. You buy a number of shares, the money you paid for them goes into the pool, and they entitle you to some portion of the pool. If the pool grows, you make money. If the pool shrinks, you lose money.

> What's an Index fund?
An index fund is a mutual fund designed to track a specific index. An index is a number designed to track the aggregate performance of a number of different assets. Most index funds invest their pool of money equally in all assets that are in the index. This allows them to grow/shrink the pool of money in line with the performance of the index.

> Can I my money straight into the S&P 500 then?
You can invest your money in an index fund which tracks the S&P 500 such as Vanguard's VFINX.

I would suggest a fund which tracks the entire market such as Vanguard's VTSMX.

>>1273191
> Can I use VanGuard for any of these?
Yes, see above.

> Which is the best for my goals?
You haven't expressed much in terms of goals, except for being able to get the money out quickly in case of emergency.

I've never withdrawn money from a Vanguard fund, but bear in mind that what you're actually doing is selling shares and then transferring cash from your investment account to your bank account. This is not like withdrawing from an ATM. I don't know how quickly you want to get the money out, but I would say in the absolute worst case it could take a few weeks. Certainly not months.

>>1273203
An IRA is a retirement account. You can definitely invest in an index fund in a Roth IRA through Vanguard. Unlike a regular investment account, capital gains in a Roth IRA will not be taxed. However, you will be penalized if you withdraw funds before you retire. I don't think a Roth IRA suits your goal of a 6-7 year investment term.

>>1273116

People who cant google basic terms shouldnt risk their money with any kind of fund or stocks.

>>1273241
>>1273045

I love you guys

>>1273253
>come to a discussion forum
>get mad at people wanting to discuss things