https://finance.yahoo.com/news/7-things-know-index-funds-160406793.html7 Things to Know About Index Funds vs. Mutual Funds
Ellen Chang
Ellen Chang
U.S.News & World ReportJune 25, 2019, 11:04 AM CDT
The big debate about the value of active management.
Index funds and actively managed mutual funds are among some of the most popular assets that are invested in retirement portfolios. Both of these assets provide diversification and are less risky, allowing people to invest in them with only a small amount of money. "When you're first starting out with investing, you likely don't have a ton of cash to create a diversified portfolio on your own and that's where funds can help," says Rich Messina, senior vice president of investment product management at E-Trade Financial. Here are seven things investors should know about how these two styles of funds vary.