A hedge Fund is a specialized investing fund which allows the Manager to access various market positions to obtain a return above the market average.
Mutual (mutual) investing fund (PIF) is a property complex without formation of the judicial person based on trust management of assets of the fund specialized management company with the purpose of increasing the value of the Fund assets. Thus a similar fund is formed from money of investors (shareholders) each hold a certain number of shares.
In difference in to any other type of mutual (mutual) funds the hedge funds are not limited in the investment strategy choosing financial instruments and for managing funds of investors can use short positions and leverage. In the frames of the enhanced opportunities for investment hedge funds use the stocks the bonds the currencies the futures the options and the other types of assets that allows to get a profit not only in a growing market but in the periods of economic recession and crisis. At the same time mutual funds work mainly with the valuable documents and property assets (excluding derivative financial instruments). Usually the minimum amount for investing in hedge fund is much higher than investing in a mutual fund from $100.000 to 1000 rubles respectively.