2. Requirements to Invest

Unlike publicly held stocks, potential investors must meet guidelines to be able to invest in a hedge fund. The main purpose of these guidelines is to protect inexperienced investors from the big risks involved in hedge fund investing. Legally, only accredited investors qualify to invest in hedge funds. These folks have had a yearly income of at least $200,000 for the last two years, and expect to earn the same in the current year. They also must have net worths of $1 million, not including their primary residence value.

investing hedge funds

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