EIP Practice Questions - EFPA European Investment Practitioner Exam

Mutual funds can only invest in debt instruments, while ETFs can only invest in equities. Mutual fund shares trade continuously on stock exchanges throughout the day, while ETFs are priced only once at the end of the day. Mutual fund shares are bought and sold directly from the fund manager at the end-of-day NAV, while ETFs trade continuously on an exchange. Mutual funds are exempt from regulatory oversight in the EU, whereas ETFs must fully comply with UCITS directives.