Answer: Immediate access to withdrawals from the fund.

## Explanation **Immediate access to withdrawals from the fund (B)** is a key differentiator: **Mutual Funds:** - Typically offer daily liquidity - Investors can redeem shares at the end of each trading day at the current NAV - No lock-up periods **Hedge Funds:** - Often have lock-up periods (typically 1-3 years) - May have redemption notice periods (30-90 days) - Limited liquidity compared to mutual funds **Why other options are not key differentiators:** - **Professional asset management (A)**: Both mutual funds and hedge funds employ professional managers - **Charging fees (C)**: Both charge management fees, though hedge funds typically have higher fees (2 and 20 structure) - **Easy diversification (D)**: Both provide diversification benefits to investors

Author: LeetQuiz Editorial Team