The Benefits Of Hybrid Mutual Funds
- Topics:
- Commercial Lending
- Tags:
- Article,
- Mutual Funds,
- Mutual Fund,
- Investor,
- Investment,
- Human Resources,
- Finance,
- Derivatives,
- Benefits,
- Retirement Plans
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Overview: The Article explains the study, which provides important information to the investment community about the benefits of hybrid mutual funds: First, hybrid mutual funds provide small investors a unique risk-return opportunity not usually provided by most of the traditional investment vehicles. Some of these funds are even able to offer positive Sharpe ratio in a declining market at affordable price. Thus, hybrid mutual funds provide affordable hedge fund- like mutual funds to small investors. Second, as a part of a larger portfolio, hybrid mutual funds can provide efficient diversification. They provide the investors with exposure to benefits of derivatives instruments which most of traditional mutual funds fail to offer. Article also explains that this also empowers the managers with the flexibility of engaging in dynamic trading strategies. This may increase the risk of the investment, but if handled by a good manager it could help the investor achieve positive results in a declining market.
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Format: PDF | Size: 131KB | Date: May 2003 | Pages: 26
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