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Hedge Funds

What's The Difference Between A Mutual Fund And A Hedge Fund?

by investopedia.com posted 10months ago 64 views
Mutual funds are generally considered to be safer investments, while hedge funds have higher leverage and thus more risk. : Both mutual funds and hedge funds are managed portfolios. This means that a manager (or a group of managers) picks securities that he or she feels will perform well and groups them into a single portfolio. Portions of the fund are then sold to investors who can participate in the gains/losses of the holdings. The main advantage to investors is that they get instant diversification and professional management of their money.

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