Strategy diversification from hedge funds

As they can take cash calls in overvalued markets, leverage portfolio, savvy investor can benefit

The interest of the ultra-high net worth individual (UHNI) in hedge funds has been on the rise. By March 2017, the wealthy had commitments worth Rs 10,078.8 crore to these funds from mere Rs 22.5 crore in December 2012.

These funds give the wealthy an option to invest in strategies that other equity products like mutual funds and portfolio management services (PMS) cannot. Depending on the market condition, for example, these funds can take high cash calls if they think the markets are overvalued. They can even leverage their base portfolio up to two times if they see an opportunity. Mutual