What are the key differences between mutual funds and hedge funds? A. Mutual fund activities are more transparent and provide a list of the assets that the particular mutual fund owns. Hedge funds are generally less regulated and take more risks for higher returns. B. Hedge funds are usually partnerships with a relatively small number of wealthy investors, whereas mutual funds usually involve large number of small investors. C. A and B are correct. D. Neither A, nor B is correct.

Question

Zack Bowman

Business

17 September, 19:54

What are the key differences between mutual funds and hedge funds? A. Mutual fund activities are more transparent and provide a list of the assets that the particular mutual fund owns. Hedge funds are generally less regulated and take more risks for higher returns. B. Hedge funds are usually partnerships with a relatively small number of wealthy investors, whereas mutual funds usually involve large number of small investors. C. A and B are correct. D. Neither A, nor B is correct.

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Answers (1)

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Jaydin Marsh · Answer 1

C. A and B are correct.

Explanation:

This can be seen on the minimum amount that both Mutual funds and Hedge fund require for people to start their investment.

On average, you can open a mutual fund account with only $2,500 as minimum investment. Most Hedge Fund on the other hand require more than $1,000,000 as minimum investment.

This made it impossible for people to enter Hedge Fund unless you're already considered as 'Wealthy'.