By Leslie M Courtesy of NWI Chronicle The difference between an index fund, a mutual fund, and a hedge fund is the level of risk incurred by the investor. To invest in hedge funds as an individual, you must be an institutional investor, like a pension fund, or an accredited investor. Accredited investors have a net worth of at least $1 million, not including the value of their primary residence, or annual individual incomes over $200,000 ($300,000 if you're married). However, some research indicates you should aim to have at least $5 million in assets under management to be successful. (AUM, which is the total market value of the investments managed by a person or entity on behalf of investors) Noted investors look to bring $20 million, although having $100 million will get you noticed by institutional investors. A hedge fund's purpose is to pool funds, maximize investor returns, and eliminate risk with strategies of hedging. Like mutual funds, hedge funds are actively manage...
