Quote:
Originally Posted by tigermack
Why are there more than one term for mutual fund? AKA index fund.
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Index fund is a type of mutual fund, but not vice versa.
A mutual fund is an investment program funded by shareholders that trades in diversified holdings and is professionally managed actively or passively.
Index funds usually are mutual funds that follow a specific index, AKA S&P 500, total stock market, International total stock market, etc. Index funds tend to be cheaper to hold as there is nobody actively managing them.