MSN Money – Last week’s turbulence in Japanese stocks — the Tokyo exchange closed briefly because of too many sell orders — reminds investors that hedging risk can providea better night’s sleep.
Hedge funds, which are designed to produce investment profits regardless of whether the stock market is going up or down, have proliferated in recent years. But they still are closed to all exceptthe very rich, and using traditional mutual funds to hedge is virtually impossible.
Enter a host of nontraditional mutual funds — including exchange-traded funds, which you can buy and sell like stocks — that give you the building blocks to construct your own hedgingstrategies.
