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Passive VS Active - Mutual Funds VS ETF VS Index Funds #shorts
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Have you ever wondered which is better: mutual funds, exchange-traded funds (ETFs), or index funds?
Are you trying to decide between mutual funds, exchange-traded funds (ETFs), and index funds?
It's important to understand the differences between these three types of investments so that you can choose the one that's best for you.
This video explains the differences between these investment options and why they're so important to understand when making your portfolio selection.
Mutual funds are actively managed by a team of professionals who invest in stocks and bonds to meet their clients' needs.
ETFs are passively managed and track an index like the S&P 500.
Index funds are passively managed and track an index like the S&P 500 as well.
The bottom line?
It's all about how much risk you want to take on. If you're looking for a low-risk investment, stick with an index fund or ETF.
If you want growth potential but don't want too much risk, opt for an actively managed fund like a mutual fund.
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#etf #etfs #indexfunds #mutualfunds #investing #financialeducation
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