184. Alexander Green on Money & Why It Matters
The Michael Shermer Show
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What's the Difference Between an Index Fund and a Mutual Fund?
A mutual fund is simply a vehicle for holding a diversified portfolio of securities. An index fund owns an index like the s and p 500, which is large cap stock. If you have aa us Large cap index fund, is going to go up about ten % a year on average. The problem with actively manage funds whether few problems. Most active managers don't beat their bench mark. Over longer periods of time over nine out of ten of them do. And not by a little bit, by about 400 basis points er, four full per centage points a year.
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