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SIE: Investment Companies & Packaged Products
SIE practice questionmediumHedge Funds

Which investor is generally eligible to purchase hedge funds?

  1. AAny individual who purchases through a broker
  2. BAccredited or qualified investors meeting minimum wealth criteria✓ Correct answer
  3. CAll employees of the Investment Company Institute
  4. DOnly government employees
Explanation

Why BAccredited or qualified investors meeting minimum wealth criteria

A is correct; hedge funds are sold to accredited or qualified investors. B, C, and D are incorrect—there are strict eligibility criteria for hedge fund investors.

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