"Several investment banks are said to be eyeing the launch of hedge funds for retail investors with minimum investments as low as $1,000" http://www.cnbc.com/id/100858768?__...EIELKEhLoVPdvrLqaNDeOcWccT-20&rememberMe=null
The question is will these hedge funds even significantly outperform the market? Or will they be better than mutual funds? This strikes me as being a little fishy. If youâre a big bank with billions of dollars, why would you open funds catering to the $1,000 crowd?
If you know you are sitting on crap investments and fear they will blow up, sometimes you try to sell it to someone before it dumps. TARP bailed out wall street and sunk main street. http://finance.yahoo.com/news/the-last-mystery-of-the-financial-crisis-154447818.html
Sounds like a great idea! Goldman has a excellent reputation and solid track record. It really sounds like they want to help the little guy!
these are 'no cost' products, no administration fees, banks just collect a commission from whoever's trading the fund. banks' salepeople only get paid on commission which might be in the form of hitting a mothly sales target or small per sale commission
I am actually aware of some rare traders who take tiny amounts from poor people and double these amounts for them. I think the idea was to help poor people think in terms of saving and investing, instead of spending only or (saving and spending). So if GS is now taking the idea, certainly there is some serious money to be made from getting the masses to divert their cash into trading operations. I actually think this is a great idea. The thing is : how are they going to do it ?
Yes, it is a great idea or the banks selling the funds. Sadly it won't be a good idea for the mug punters that buy. The term 'Hedge Fund' is just a marketing trick and it will be used to charge higher fees than normal. Never forget tht Wall Street is never on your side, it's always on their side but they need the masses in order to generate fees and charges regardless of where the markets head.
+1. two thoughts re this. first, wall street is scared of the trend of money leaving active funds (or never going in in the first place) into passive low cost funds like vanguard so they're doing what they can to reverse this. second, it's not wall street's fault for wanting to make a profit. they can't force you to buy what they're selling. if an investor is too stupid/lazy to do research they wouldn't touch these things w/ a 10 ft pole. esp when the research saying these things are crap is available for free to anyone on the internet. and no, reading the glossy brochure from the salesman doesn't count as research.