Which expense is found in a variable annuity but not in a mutual fund?

In a variable annuity, mortality expenses are included because these products are designed to provide certain guarantees, such as death benefits, which require the insurer to account for the risks associated with mortality. The mortality expense specifically covers the cost associated with providing these benefits to the annuitant's beneficiaries in the event of the annuitant's death.

Mutual funds, on the other hand, do not generally include any mortality costs, as they are not insurance products and do not offer death benefits. Instead, mutual funds pool investors' money to purchase a diversified portfolio of stocks, bonds, or other securities without the additional complexity of insurance-related expenses.

Administrative fees and management fees can be found in both variable annuities and mutual funds, as both require management and operational support. Transaction costs also apply to both types of investment products, as they involve buying and selling securities in the market. Therefore, the unique inclusion of mortality expenses in variable annuities differentiates them from mutual funds.