Which of the following has the highest running expenses?
A
Passive Funds
B
Index Funds
C
Exchange-Traded Funds (ETFs)
D
Active Funds
Correct Option:
D
Explanation
Active funds generally have higher running expenses because they involve continuous research, active portfolio management, frequent trading, and professional fund management. As a result, they usually have a higher Total Expense Ratio (TER) than passive funds.
