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Investing 101_ index vs mf what are the differences

edited January 22 in The Bullpen

Are there room for both at the top

Index vs mf what are the differences

It’s easy to get confused about what the terms “mutual fund” and “index fund” refer to. The two terms refer to distinct categories: “mutual fund” refers to a fund’s structure, whereas “index fund” refers to a fund’s investment strategy. Many, but not all, index funds are structured as mutual funds, and many mutual funds are index funds. Generally speaking, though, “index fund” refers to a fund whose investments closely track a market index, while “mutual fund” refers to a broad class of investment funds that follow a range of investing strategies. It’s important to understand the similarities and differences between mutual funds and index funds so you can make an informed investing decision.
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