A hedge fund is a type of investment fund that pools money from various investors to invest in a wide range of assets, including stocks, bonds, and derivatives. Unlike traditional mutual funds, hedge funds often employ complex strategies, such as short selling and leverage, to maximize returns. They are typically managed by professional fund managers and are available to accredited investors, which means they often have higher minimum investment requirements. Hedge funds aim to generate high returns regardless of market conditions, making them attractive to some investors. However, they also come with higher risks and fees compared to other investment options. Due to their less regulated nature, hedge funds can be more opaque, and investors should conduct thorough research before investing.