What are the key differences between index funds and actively managed mutual funds? For each, there are distinct characteristics and suitability for different investors. In simple terms, index funds are passively managed and try to match the performance of market indexes while actively managed mutual funds have managers making decisions to beat benchmarks.
In this CNN Underscored article, AlphaCore’s Senior Research Analyst Madeline Hume shares her insight on what investors should consider when it comes to these two types of investment vehicles. She sheds insight on how they work and helps breaks down the costs associated with each.