A hedge fund pools money from investors to buy securities or other types of investments. Now, that’s an oversimplification. They do some extra things.

Understanding risk appetite and the importance of asset allocation Different investors have different limits to the risk they are willing to take. The higher the ability of an individual to take risk, the higher the person’s risk appetite. Some investors can stomach much more risk than others. Can you

Risk is the chance/ possibility of not getting the expected profit or (sometimes) even a loss associated with taking a financial decision. The higher the risk, the higher the (expected) return.

Crypto is a new asset relative to other asset classes such as stocks and bonds. Due to popular demand, it has risen to be an alternative to investments with regulatory bodies and government control.

Government bonds, government Sukuk and T-bills are considered “risk-free”. Except for Sukuk, all other instruments are debt obligations.