explained in a minute!
You definitely heard that some redittors took down a hedge fund or you’ve listened to this term from some movie or news, what the heck is a hedge fund?
Suppose there’s a man in your neighborhood, who is quite successful in his life, and he’s earning money from the stock market, you met him and said, bro, I also want to earn money from stock market, but I don’t have time to learn the inner details of trading and investing.
so you gave your money to him and just like you other people as well gave him their money to invest in the stock market.
The money that he got to invest in the stock market is called a hedge fund. Now this person or his team will invest this money in stock market and they’ll try to grow your money.
This person will now take management fee from you, he’ll say I’m managing your money and giving it my precious time, so you should give me some fee to do it. In the real world, it can be 1–5% of your investment.
That’s the story of the hedge fund in simple terms.
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