like mutual funds..but..hedge funds r exempt from SEC regulation(ie. lightly regulated) and can therefore pursue more speculative policies than mutual funds..
they typically r open to institutional or wealthy investors only...
In a word, Hedge Funds carry more risks and aim for higher returns.
Unlike traditional mutual funds, it can short. also it can use leverage to magnify gains (or losses)...
Usually hedge funds are for sophisticated investors who have a big risk appetite, but recently the rules are relaxed and retail investors can also invest in certain category of hedge funds, such as fund of funds...
Usually hedge funds are for sophisticated investors who have a big risk appetite, but recently the rules are relaxed and retail investors can also invest in certain category of hedge funds, such as fund of funds...