Comparison between mutual fund and hedge fund

Here's a quick summary of the key differences between hedge funds and mutual funds (see image). You will find:

Hedge funds have no restriction on using derivatives whereas mutual funds are limited
Hedge funds are only offered to accredited investors whereas mutual funds are offered to the public
Hedge funds aim for a high absolute return whereas mutual funds only aim to beat their peers within the same category

The 3 strategies you learn in Investing Accelerator (long-term and monthly passive income) fall under the hedge fund category, which is why it is hard to replicate the result using only mutual funds.

What do you think?

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Source: Canada Portfolio Management Techniques

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