Which one should you invest in?
Index Funds vs. Mutual Funds
Mutual Funds vs. Index Funds: FAQs
Are mutual funds or index funds safer?
Generally, index funds are less risky to invest in than mutual funds. This happens because mutual funds are managed actively, and there is more room for error.
Do you pay taxes on index funds?
Yes, you have to pay taxes on all capital gains from investments, whether they come from index funds, mutual funds, or other investment types.
Can I have both a mutual fund and an index fund?
Yes. You can invest in as many funds and fund types as you like. Different kinds of investments can reduce risks and increase capital gains.
Get Bank Deals & More
Sign up for our email updates on the best bank deals, money savings tips and more.