Contents Introduction; Research Methodology; Chapter- I; • Basic concepts of financial derivatives; • Force behind the development of the derivative market; • General benefits of derivatives; • Kinds of derivative; Chapter- II; • Hedge Fund: Concept; • Historical perspective of the Hedge Fund; • Specific characteristic of the Hedge Fund; • Structure of Hedge Fund; • Location of Hedge Fund; • Taxonomy of Hedge Fund strategy; Chapter – III; • Hedge Fund: Unregistered but not Unregulated; • Hedge Fund regulation; o U.S.A; o U.K; Chapter- IV; • Hedge Fund in India; • Regulation related to Hedge Fund in India; • Problems and Prospective; Chapter- V; • Suggestions; • Conclusion