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Explain three key differences between index funds and mutual funds

Sagot :

The three main differences are management style, investment objective and cost — and index funds are the clear winner.

Sure hope this helps you and pls mark me brainiest!

The main difference between index funds and mutual funds is that index funds seek market-average returns whereas mutual funds tries to outperform the market.

What is index funds?

"Index funds are investment funds that follow a benchmark index, such as the S&P 500 or the Nasdaq 100."

What is mutual funds?

"A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. "

"If a mutual fund is active, then it has high fees than index fees."

"The performance of index fund is predictable whereas the performance of active mutual fund is not predictable."

To learn more about index fund and mutual fund here

https://brainly.com/question/2804420

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