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Difference between Hedge fund and mutual fund.

What we can understand from two of the terms is that booth pools the money from the potential investors. Only the way to operate the fund is different.

What is Hedge fund?

  • According the wikipedia difinition: A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.
What is mutual fund?
  • According the wikipedia difinition: A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Mutual funds have advantages and disadvantages compared to direct investing in individual securities.
This is the best words which describes in best possible manner. Both have lock in period. Minimum time is vary with both. Know the terms and condition before investing or making any decision.

Most of the people who are in the financial market have dream of launching a startup. Here you can do as hedge fund or mutual fund with the people of same core interest area. In this arena, you can do wonders.
Most of the well known fund mangers are well known analyst/trader/investor before entering into the heavy fund management.
if you are thinking of the one in future. do know all legality. Register like any other business and start the play. 

Ask doubt in comment section below??

Comments

  1. Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
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