| Audio pronunciation for
"funds"
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funds: money or other resources available for a specific purpose.
“Many small businesses make the mistake of using short-term funds for long-term investments.”
Related term:
hedge fund: an aggressively managed portfolio of investments that uses advanced investment strategies such as leverage with the goal of generating maximum return on investment. Similar to mutual funds in that investments are pooled and professionally managed, hedge funds are distinguishable because they are often unregulated and have more flexibility in investment strategies. This flexibility allows fund managers to make speculative investments that can carry greater risk than the overall market. Most often hedge funds are established as private investment partnerships that are open to a limited number of sophisticated investors and require a very large initial minimum investment.
Note:
The term hedging generally means the practice of attempting to reduce risk, and indeed early hedge funds tried to hedge against the downside risk of markets.
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