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

Hedge funds and mutual funds are both popular investment options that offer managed portfolios for investors.

While mutual funds and hedge funds can seem similar, they are different.

Mutual funds have the following characteristics.

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– All investors can buy mutual funds, often with an investment as low as $10. – Fees are lower with mutual funds. – Although mutual fund managers charge fees, they do not take any share of the profit. – Mutual funds are fully regulated by the SEC.

Hedge funds differ from mutual funds and will have the following characteristics.

Hedge Funds

– Only accredited investors can invest in a hedge fund. – Hedge funds cannot be bought or sold when an investor wants to. – They are structured as a limited partnership, and because of this, they are not as regulated as mutual funds by the U.S. Securities and Exchange Commission.

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