Hedge Fund (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

A pooled investment fund that uses diverse strategies to earn active returns, typically available only to accredited investors.

What to consider

Recognize that these funds are high risk and complex.
Review their strategies and fees before investing.
Ensure they fit within a diversified, long-term portfolio.

Real world scenarios

To diversify his investment strategy, David allocated part of his portfolio to a hedge fund that used advanced techniques to generate returns even in volatile markets.

Related terms

Investments & Retirement

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