If you are a high net worth individual, you’ve probably been through this dilemma: is it better to invest in a fund of hedge funds rather than a single hedge fund? One of the advantages of investing in a fund of funds rather than a single hedge fund is that you get more diversification. Financeasia.com reports:
Risk levels decline as diversification increases. It depends on investors as to whether they want a low risk product. Some fund of funds offer consistent absolute returns. They could offer better transparency and liquidity than some single funds.
Read more: Are hedge funds good for you?
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