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Final answer:
Mutual funds and hedge funds differ in investment practices, portfolio construction, and fees, among other aspects.
Explanation:
Mutual funds and hedge funds differ in several aspects:
- Investment practices: Mutual funds are passively managed, while hedge funds are actively managed.
- Portfolio construction: Mutual funds are typically more diversified than hedge funds.
- Fees: Hedge funds charge higher fees compared to mutual funds due to their performance-based fee structure.
- Exclusivity: Both mutual funds and hedge funds can have exclusivity based on investor eligibility or requirements.
Learn more about Mutual funds and hedge funds comparison here:
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