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All of the following are differences between mutual funds and hedge funds EXCEPT:

A. Investment practices
B. Portfolio construction
C. Exclusivity
D. Fees


Sagot :

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:

  1. Investment practices: Mutual funds are passively managed, while hedge funds are actively managed.
  2. Portfolio construction: Mutual funds are typically more diversified than hedge funds.
  3. Fees: Hedge funds charge higher fees compared to mutual funds due to their performance-based fee structure.
  4. Exclusivity: Both mutual funds and hedge funds can have exclusivity based on investor eligibility or requirements.

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