If you’re confused about the question “what is a hedge fund?” you are not alone.
Part of their allure is their exclusivity and secrecy.
While hedge funds are considered unique investments in the world of personal finance,
in simple terms, they are nothing more than an investment vehicle similar to a mutual fund.
The difference is that the fund manager has broader discretion to invest in a wider variety of financial products.
The popularity of hedge funds has exploded over the last few decades, and there are now almost $4 trillion invested.
What Is A Hedge Fund?
At its most basic, a hedge fund is a partnership between a professional fund manager and investors.
The main difference between a mutual fund and a hedge fund is the amount of risk and diversity of products.
If this sounds a lot like an actively managed mutual fund, you’re not wrong.
While there are hundreds of strategies, most can be grouped into four main categories:
Hedge Fund Strategies
Swipe up to Continue Reading!