eli5, What are hedge funds ?

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I ve started learning about the market but I dont know what hedge funds are. Please explain

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Anonymous 0 Comments

They manage peoples money and invest it. To invest in a hedge fund though you have to be an accredited investor because hedge funds have different types of risks than what ordinary people just trying to save for retirement should be exposed to. Many hedge funds have different goals but traditionally the purpose is to have consistent returns regardless of market conditions without traditional market exposure. They do this with derivatives, commodities and single stock investments ect.

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