Difference between Index Funds and Mutual Funds

difference between index funds and mutual funds

The stock market has always been volatile and completely unpredictable, hence, making a desired return on the investment is not a cakewalk for new investors. Even if, you have been investing in the stock market or mutual funds for years, nevertheless a tiny mistake that could obstruct achieving your investment goal or sometimes leads to even loss.

Therefore, if you are a beginner, it is always recommended to invest through mutual funds. You must have heard the terms ‘mutual funds’ and ‘index funds’; when it comes to an investment vehicle. And it’s possible to get mixed up between the words “mutual fund” and “index fund.”

This article intends to ellaborate the difference between index funds and mutual funds based on various significant perspectives.

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