What is the difference between a mutual fund and a hedge fund?

[Hojo]

To me I was thinking mutual fund or mutual stock is the highest stock being bought for the week or month but I don't really know , I still need a better explanation

 

[Nomad]

Even though I have not invested in mutual funds, I know what mutual fund is and how it works, however, I have only heard of the word hedge funds and I don't know what it is and how it works. There are no hedge funds in my home country.

 

[Kaffyfolla]

Mutual funds are regulated investment products offered to the public and available for daily trading. Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher risk investing strategies with the goal of achieving higher returns for their investors.

 

[HayKay]

Hedge funds differ from mutual funds in the sense that they try to derive maximum profits from monies pooled from investors by taking maximum risk. So while mutual funds might take things slower and more cautiously, hedge funds is more aggressive.

 

[Justin]

when you invest in share market, you do it on your own. However, when you put money in mutual funds, experts will invest your money in various sectors including shares. I don't know what hedge fund is.

 

[Blessedsam60]

Many people think of Mutual funds to be the same as Hedge funds, because these two platforms act as managing funds looking for increased returns for investors. Investment hedge funds are more complex and more suitable for aggressive investors and only for accredited members. while mutual funds with risk levels that vary from conservative to aggressive profit.

Thanks for letting us know about this two different terms. I haven't invested in shares and stock before so I have a very shallow experience in this.
Thanks again

 

[Ononivami]

That's an incisive analysis. Before now, I absolutely do not know the difference between the mutual funds and the edge fund. It's now very clear to me.

 

[Kaffyfolla]

Mutual funds are regulated investment products offered to the public and available for daily trading. Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher risk investing strategies with the goal of achieving higher returns for their investors.

 

[Sincerem]

From a beginners perspective mutual funds can be categorized as a portfolio with effectively overseen protections like stock and bonds. So the mutual funds contain so many stocks inside it's embodiment.

 

[Monster Masterpiece]

When according a loan to invest in stocks it could be a form of mutual funds but if you are investing your own money in stocks then it is hedge funds or stocks funds.

 

[LadAckerman]

This is the way I understand them. The key difference between the two is that hedge funds chase the big fish investments that are high risk, high reward. Mutual funds, on the other hand, stick to the shallows where they can catch smaller but more reliable returns. The hedge funds are for bigger targets while mutual funds are for smaller targets.

 

[tyrim88]

I as an investor would go for mutual funds,because the funds has very low risk factor and exposure,and also the issue of the investment being managed by seasoned professionals is one advantage.

 

[frederick_9]

Mutual funds are publicly available, regulated financial instruments that can be traded on a daily basis.
Private investments known as Hudge funds are exclusively accessible to accredited investors.
In order to generate a larger return for their clients, hedge funds are renowned for employing higher risk investing tactics.