Which type of fund is the best to use out of Mutual and Hedge? why ?

Expert Solution

I think Those Mutual Funds which have a balanced allocation to equity portion and debt portion are the best funds because they are adequately exposed to different economic scenario and they can sustain and survive and provide a high rate of return through various economic phases and I think balanced Mutual Funds have best criteria of being allocated into both equities and bonds and they will be having a better exposure to deal with various fluctuations in the economy and their performance will be stable.

When The hedge Fund is concerned I will be liking the global macro hedge fund which is investing into various different economy and they will be trying to exploit these conditions and make a higher rate of return through them and they are able to generate higher rate of return because they are trying to play on the exchange rate fluctuations as well, and they will be shorting various securities as well and they've will be properly hedging their positions so due to their exposure to the global Markets and primary play on the economy, these macro hedge funds are always having a competitive edge.

jeff jeffy answered 2 years ago

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