Often, investors are curious about the differences between hedge funds and mutual funds. Both have similarities in that they make use of diversification to achieve returns and are constructed from pool funds, meaning the funds' capital is derived from multiple investors which is then used by the manager (or managers) for investing in securities that fulfill specific criteria or requirements.
Having said that, there are some marked differences between mutual funds and hedge funds, and those are exactly what we will be discussing in this article.
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