Difference between Mutual Funds and Index Funds
Hi, Today I am going to tell you Difference between Mutual Funds and Index Funds Mutual funds and Index Funds are both popular investment vehicles that allow investors to diversify their portfolios and potentially earn returns on their investments. While they share some similarities, there are also some significant differences between the two. Mutual Funds A Mutual Fund is a type of investment vehicle that pools money from multiple investors to purchase a portfolio of assets, such as Stocks , Bonds , and other Securities. The portfolio is managed by a professional fund manager, who makes investment decisions based on the fund's investment objective. Investors in a Mutual Fund own shares in the fund, which represent a portion of the fund's assets. Want to know more about Mutual Funds Click Here One key advantage of Mutual Funds is that they offer investors a high level of diversification. By pooling their money with other investors, individuals can gain access to a broa...