Hedge Funds Regulation

Hedge funds are investment funds that pool money from accredited investors to pursue various strategies for higher returns. Unlike mutual funds, they face less regulation, allowing flexibility in their investments. However, they are subject to some oversight to protect investors and ensure market stability, primarily by the Securities and Exchange Commission (SEC) in the U.S. Regulations focus on disclosure of financial information, preventing fraud, and monitoring risks. While hedge funds can take bold investment risks, they must still adhere to rules designed to maintain trust and transparency in the financial system.