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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 Levy – Updated Mar 17, 2025 at 1:20PM

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.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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