Managed forex funds is the term used for the accounts traded for you by professional trader, known as the money manager. It is an ideal way to diversify your investment and increase overall returns. Managed forex funds works well for both retail investors and forex traders. It allows access to the knowledge and expertise of an experienced forex money manager without the restrictions and entrance charges of a hedge fund. It offers the following benefits:
Consistent returns in either a rising or declining equity market
Diversification from a traditional equity/bond portfolio
Disciplined, risk controlled trading of liquid assets
Daily reporting of account positions, accessible online
24/7 access to account balance
Immediate access to funds
An important feature of the managed forex fund that protects your fund is that the money manager does not have the power to withdraw your funds. Your funds are held by the forex broker that you open your managed forex account with. The forex money manager has the ability to trade for you but he has no control over your account, and cannot withdraw any funds from your account.
The managed forex funds is attractive to those people who want to participate in forex market trading but just do not have the time to do so because of a very busy schedule. It gives you access to forex trading without the need to monitor forex market all day, every day. Instead, your money manager will be the one doing all the work for you without putting your money on the line. Another option that allows you to trade forex without the hard work is to use scripted software that will help you place trade on your behalf. You can consider using a scripted Forex Robot that has been fully tested for its profitability. Having a good software by itself does not guarantee you of a 100% successful trading experience, it is very important you follow the Strategy Guide provided with education material that comes with the Robot.
If you finally decide to have managed forex funds, you must be aware of all the possible consequences that it has, and you should also be very realistic when it comes to deciding the total amount of ‘risk capital’ that you will be investing. ‘Risk capital’ is the capital which you can actually risk losing in the end; you should never risk a capital that will eventually change how your life works every single day as this would not be very practical. For example you will want to risk the money intended for your children’s education.