Hedge funds differ from open-end mutual funds in the sense that
A)they require a much smaller initial investment.
B)they are open to additional investments at any time.
C)they do not accommodate investors who want to sell their shares back to the fund.
D)they invest in very limited set of securities.

Question

Quizplus · Accepted Answer

Hedge funds do not allow investors to redeem their shares back to the fund, unlike open-end mutual funds which allow redemptions at any time. This lack of liquidity makes hedge funds unsuitable for many retail investors. The initial investment required for hedge funds is also typically much higher than for mutual funds. Lastly, hedge funds can invest in a variety of securities, often with higher risk and lower liquidity than those available to mutual funds.

Hedge Funds Differ from Open-End Mutual Funds in the Sense