What is a Hedge Fund?

Answer:
A hedge fund is an aggressively managed investment

fund that uses very complicated, advanced investment strategies. These funds require large minimum investments and limit the number of investors.

The goal of hedge funds is to get high rates of return; this goal of course comes with high risks. Hedge funds are similar to mutual funds because they can invest in many types of securities.

If you want to invest in a hedge fund you have to meet certain requirements, since hedge funds are not heavily regulated. You generally have to be an accredited investor with a lot of investment knowledge. You also have to have a net worth of 1 million dollars or more.