Hedge Funds Vs. Mutual Funds: Which Is The Better Investment?


Investing can be a daunting task. You want to ensure that you learn how to invest your money in the best way possible, which can take time and effort.

Hedge funds and mutual funds are both popular investment options that offer managed portfolios for investors. So which is right for you?

What Is a Mutual Fund


Many investors use mutual funds for their brokerage accounts and the retirement accounts like traditional 401k, Roth 401k, Individual Retirement Accounts (IRA), Health Savings Accounts (HSA), and other long-term accounts.

Mutual funds are open-ended funds, which means they can issue unlimited new shares with the net asset value reestablished after the market closes. Closed-end funds offer a fixed number of shares, and no more are created.

Types of Mutual Funds


Actively Managed Mutual Funds vs. Index Mutual Funds

An actively managed fund is run by a fund manager or managers whose job is to pick the correct stocks and beat the underlying benchmark index. 

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