A New Investment Trend for the Public

About two and a half years ago a small revolution occurred when investment strategies previously reserved for wealthy individuals became available to the general public through mutual hedge funds.
The funds attracted clients with assets in the billions and also showed good returns, but it is unclear whether they justify the costs over time.

This is an investment trend that is gaining momentum under the radar. Hedge funds, previously considered a tool only for millionaires and institutional investors, were opened to the public about two and a half years ago.
Data shows that it was widely adopted.
Currently, 46 mutual hedge funds operate, offered to the public through the stock exchange and managing close to 3.5 billion dollars.

The returns of these funds also contribute to their growing popularity.
Since the beginning of the year, the ten best-performing mutual hedge funds achieved returns of 30% to nearly 60%.
The top fund, Multi-Strategy Hedge Fund, rose by 58% compared to a 43% rise in the main index, and its assets are close to half a billion dollars, making it the largest equity fund in the sector. How to Invest in a Mutual Hedge Fund A mini-revolution started in the mutual fund industry.

The securities authority, alongside industry leaders, launched a new investment product: mutual hedge funds.
Sophisticated strategies previously available only to wealthy investors are now accessible to everyone.
The private hedge fund industry manages around 75 billion dollars and has become popular among wealthy individuals seeking to diversify their investment portfolios.
The funds use complex strategies such as options trading,

derivatives, and other market instruments.
The goal is to outperform the market and avoid sharp losses during bear markets.
Mutual hedge funds, however, are offered to everyone.
They do not have a minimum requirement beyond the price of one unit, usually a few hundred dollars, and anyone can purchase them through a bank account or investment house.
Mutual hedge funds offer several financial management models.
Most are equity-based with long-short strategies, investing in long-term stocks while taking positions in stocks expected to decline.

Some are multi-strategy funds with flexible policies, allowing investors to check past performance or rely on the reputation of the fund manager. Currently, 46 mutual hedge funds are listed on the exchange, most with a history of over a year.
Investors should note that these funds are designed for long-term investment, similar to traditional hedge funds.
Advantages and Disadvantages Liquidity is limited compared to other funds, usually monthly or quarterly redemption.
This allows fund managers to operate with stability.

Management fees are usually 1% to 1.5% of assets, but performance fees are 20% of profits.
This attracts sophisticated fund managers.
Tax Benefits Public mutual hedge funds enjoy tax advantages.
Taxes on gains are paid only at withdrawal, unlike private hedge funds where taxes are applied annually.
This can result in significant advantages over long investment periods.
Top Performing Funds Top-performing funds use experienced managers with strong track records.

Multi-strategy funds and long-short equity funds have shown returns of 50% and 46% since the beginning of the year.
Bond-focused funds achieved more modest but solid returns of around 8.4%.
Potential Risks If legislation passes, mutual hedge funds could become a leading investment product, potentially replacing some traditional mutual funds.