What is a Hedge Fund? Have you ever heard about hedge funds? Well, this is a term that is quite new and is getting popularity in the market. In the financial world, it is very common to use the terms ‘hedge fund’ and ‘fund’ interchangeably, but I will explain the difference between them here. Hedge fund is a type of fund that is managed by investment professionals who are known as hedge fund managers. They invest in a variety of securities, including stocks, bonds, and currencies. These fund managers use specific strategies to make money by predicting the market movements. These managers use their expertise to trade in the market and make a profit. These fund managers use various techniques like derivatives, options, and futures to make money. So, let’s discuss in detail about hedge funds. 1. A hedge fund is a type of mutual fund that focuses on making money. The fund is managed by an experienced professional who makes the decisions regarding investments. The fund is not invested in