Hedge Fund vs. Private Equity

What is an investment in finance? They are investments in financial assets to create an additional source of income and preserve and increase wealth.

Define private equity fund.

A private equity fund is pooled capital used to invest in private companies and a wide range of stocks in various industries. The investor in such a long-term investment receives a stake in the business and the right to make decisions regarding the company's development. Direct investments give the investor not only the opportunity to earn money but also to gain control over the company in which the capital was invested. 

Hedge funds and private equity funds differ in terms of investment methods, liquidity, risks, volatility, and other factors. Hedge funds use a variety of strategies, including aggressive strategies, to generate returns for their investors, even in unfavorable market conditions. They usually offer higher liquidity than private equity but with significant risks.