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Hedge Funds vs. Mutual Funds: What's Better?

Hedge funds and mutual funds share several similarities and many differences. Read on to learn about both and which is the better investment option for you.

By Adam Levy – Updated Jan 25, 2025 at 6:45PM

Key Points

  • Mutual funds pool money from all investors, are SEC-regulated, and trade daily.
  • Hedge funds pool from accredited investors, use complex strategies, and charge performance fees.
  • Mutual funds typically charge a flat management fee, while hedge funds have a performance fee as well.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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