What's Difference Between Hedge & Private Equity Funds

What are private equity and hedge funds? Private equity funds are collective instruments that:

• Pool funds from various investors and make decisions about their further investment directly in private companies or projects;
• Are options for reliable medium and long-term investment;
• Participate in the management of the company to increase its value or further development;
• Provide an opportunity to diversify the investor portfolio;
• Ensure lower volatility rates - the risk of using a financial instrument and price volatility - than hedge funds.

Hedge funds are independent types of investment funds created to obtain maximum profit with a certain level of risk attached.

Compared to private investments, they use aggressive investment strategies and offer higher asset liquidity. By understanding the difference between hedge funds and private equity funds, you can decide which works better for you.