Similar to open-end mutual funds, hedge funds are companies which invest in securities which are selected by a fund manager. Also similar to open-end mutual funds, hedge funds pool the money of investors through the sale of investment shares and use the proceeds to assemble a collection of investments within a portfolio which the fund manager selects based upon the fund’s investment focus.
However, unlike open-end mutual funds hedge funds are private, they are only available to accredited investors, they cannot market themselves to the general public and they are not regulated by the Securities Exchange Commission.
None of these specific investment classes are recommended by durableincome.com, however, better understanding of them will help you prepare for a more secure retirement. Discuss each asset class or particular investment carefully with your financial advisor before making any investment decision.