PLZ HELP ASAP

A retail investor, aged 60 years and with an investment portfolio of $500,000 wishe to understand the difference between hedge funds and mutual funds. He has heard that retail investors are not allowed to invest in such investments and has made thre statements below. You are required to (i) identify the incorrect aspect within each statement and (ii) explain the issue raise by the investor. (1 + 1 = 2 marks) Statement 1: Hedge funds are safe investments since they hedge out all the risk. This means that Hedge funds are safe investments since I can get returns without taking any risk. (1 + 1 = 2 marks) Statement 2: Hedge Funds and Mutual funds both invest in listed equities and bonds. This means that Hedge funds are as liquid as mutual funds and if I need to liquidate my investments, I would be do so as easily as with Mutual funds. (1 + 1 = 2 marks) Statement 3: Hedge Funds and Mutual funds are investment vehicles for investors, right? This means I should be allowed to invest in Hedge funds or mutual funds if I wish to