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Index Funds vs. Mutual Funds: What Are the Differences?

Unlocking investment potential: navigating index funds vs. mutual funds for cost-effective diversification.

By Adam LevyUpdated Mar 17, 2025 at 1:20 PM

Key Points

  • Index funds aim to match a benchmark index, offering simple asset class exposure.
  • Mutual funds strive to outperform indexes, involving higher management fees.
  • Mutual funds may incur sales loads and higher taxes due to frequent trading.

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