What You Need to Know about Index Funds and Mutual Funds

On their surfaces, index funds and mutual funds may seem interchangeable. Both offer diversification of assets and are commonly invested in a basket of stocks that aim to meet a certain investment goal. However, there are many key distinctions that separate an index fund from a mutual fund – distinctions that may be crucial to your portfolio of retirement investments. The Breakdown of Index Funds Index funds invest in a specific list of securities, such as a Dow Jones Industrial Average or S&P 500 index, which track stocks based on certain factors. The Dow Jones is a qualitative index […]