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What is the difference between a hedge fund and an investment bank?


If they can be compared to an investment management company that would help

A HEDGE FUND is an aggressively managed portfolio of investment that uses high-risk techniques, such as borrowing money and selling short, in an effort to make extraordinary capital gains. It is for sophisticated investors, it is unregulated. Hedge Funds are mutual funds for the super-rich!
An INVESTMENT BANK (IB) is just a financial institution that deals primarily with raising capital, corporate mergers and acquisitions, and securities trades, usually as an intermediary.
There differences lies on their functions.
INVESTMENT MANAGEMENT CO. (or Fund Manager/Asset Management/Wealth Management/Portfolio Management/Private Banking) offer professional service of managing securities and assets to meet specified investment goals to benefit investors.

A hedge fund is for privet investors only.....lol

A bank (Investment or otherwise) is an institution (company) that takes customers money and uses this money to lend to others. It is licenced to take deposits and to make loans. It complies with the banking code.
A fund is a collective investment scheme or vehicle that takes INVESTORS money then invests it in the objects of the fund. e.g fund of funds, property funds, tech funds etc. A hedge fund is (usually) offshore and has less regulation and can "hedge" investments to ensure maximum profitability. Funds are licenced in a different way and can have a fixed life or be in perpetuity. A fund has no legal status on its own and will need to be incorporated or constituted in a vehicle like a limited company or partnership etc.

xxR

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