Who should invest in managed futures?
A. Managed futures are not appropriate investments for all investors. Before investing in managed futures, a particular investor’s suitability must be determined. If an investor is deemed suitable, he or she will be provided with all of the necessary information to make sure both risks and possible rewards of investing in managed futures are understood. Generally, in addition to having the required risk capital, an investor needs to have realistic expectations about returns on a managed futures investment and tolerance to drawdowns that are prone to occur with managed futures products.
