Raghu Kumar, Co-founder, RKSV, says there are many benefits to running a hedge fund. Hedge fund managers charge a 2 per cent management fee, have 20 per cent share in the profit and no share in the loss. Plus, regulatory scrutiny is limited. He should know, since he tried floating a hedge fund in New York in 2008. “Investors wanting to invest in a hedge fund need to look at the fund manager’s track record,” says Raghu Kumar. “This is possible even if the fund does not have adequate history. It would be good to choose a fund backed by a known name such as Ambit or Motilal Oswal… Having invested in a hedge fund, there are many metrics that an investor needs to keep track of, such as the fund’s Sharpe ratio and fund’s drawdown, besides the returns generated.”

Raghu Kumar

Raghu Kumar

Raghu loves trading, algorithms, and figuring out ways to beat the market. He enjoys workouts, naps, food, listening to Carnatic music, teaching his dogs (pug named Zenzi and Shih Tzu named Cactus) cool tricks, and spending time with family and friends.A list of his authored articles on NDTV Profit can be found at http://profit.ndtv.com/topic/rksv