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Investment Fund vs Hedge Fund

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Your question is Investment Fund vs Hedge Fund. Take a moment with it on the right.

Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).

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Problem

Scenario

You're speaking with a client team that wants a clear strategic view of different pooled investment vehicles. They need a concise explanation that distinguishes common investment funds from hedge funds, especially in terms of objectives, investor base, risk, liquidity, and how each is typically managed.

Question

Explain the difference between an investment fund and a hedge fund.