Are hedge funds better long term investments than no load index mutual funds?

Question

Peace

Answer 1

It all depends on how much risk you're willing to take, but the short answer is no.  I pay someone to manage my portfolio, but I can tell you that I am a moderately aggressive investor and I don't believe in hedge funds.  I don't believe in no load mutual funds either, though, for several reasons.  I also believe that I know enough about managing my portfolio to make some really stupid mistakes if I'm not careful, so that's why I pay someone to help me.  So far he has done a very good job, and he's well worth the money I pay him.

Answer 2

actually, that's the subject of a million dollar bet between warren buffet and a hedge fund company.

buffet is backing a vanguard s&p500 mutual fund.

i think that says everything you need to know.

Answer 3

All depends on the hedge fund.  Hedge funds are really not much more them mutual funds with a little more flexiability in what they can purcahse. Just like mutual funds, most hedge funds will not beat the S&P 500.  Stick with the SPY

Answer 4

Do they have higher returns? Yes.  That's why people pay the huge fees to invest in them.  Are they "better"?  That's an individual choice.  Higher returns come with higher risk.  If you're not comfortable with the risk, then the returns don't matter.

Answer 5

These 2 asset classes cannot be directly compared. Best is to ask an investment advisor on the risk profile you fall in and accordingly take a call.

Best of luck..

Answer 6

That depends on the fund. It really could go either way. You win some you lose some.