Which of the following is common to both hedge funds and mutual funds?

Question

Quizplus · Accepted Answer

Both hedge funds and mutual funds typically charge management fees to cover the costs of managing the fund. However, while mutual funds may also charge performance fees, this is less common and typically subject to certain restrictions. SEC registration and disclosure norms are also applicable to both types of funds, but investor profiles may vary greatly between hedge funds (which typically have high minimum investment requirements and target wealthy individuals and institutions) and mutual funds (which are generally more accessible to retail investors). Therefore, the best choice is C) Management fees, which applies to both hedge funds and mutual funds.

Which of the Following Is Common to Both Hedge Funds