Index Fund vs Mutual Fund Which is Better ?

index fund vs mutual fund

mutual funds are funds, you are hand over your money to mutual fund manager. to make you the money in the long run.
index funds are funds, your investing your money on yourself. to make money in the long term.

when comes to index fund vs mutual fund ,  most of the peoples have doubt in; which is better to invest their money.

so to make you to take clear decision. lets see the advantage and disadvantage in these two funds. (index fund vs mutual fund)

 

advantage in mutual funds.

instead of saving money in the bank account, mutual fund is a better investment.

when comparing saving interest account with the mutual funds. this funds make more money in the long run.

if you invest your money on index funds. your taking risk on yourself, but when you hand over money to mutual fund manager. your not taking any risk on yourself.

when peoples consider about mutual fund investment. they always get a financial advice from their mutual fund manager.

investing your money consistently in mutual funds. which helps you to have money on retirement period.

so I finalized that. if your being without any investment and based on your long term saving. then choose to invest at least in the mutual fund. so you will have some money in your retirement period.

disadvantage of mutual funds.

investing in mutual funds never make you millionaire in your life time.
mutual funds manager cut big amount of commission from your investment. which highly affect your investing and long term return.
still no one have made the fortune through investing in  mutual fund in their life time

when comes to lot of types funds like hedge funds extra. the mutual funds is the lowest return funds in the world.

when you talk to your mutual funds manager. they always try to make you to invest in mutual funds because of they want be rich for the life time.

 

advantage of index funds.

index funds are always great and gave you good return averagely than mutual funds.

index funds helps you to invest and manage money on yourself. so you can know how much money your making.

on the other hand, you can make average of 10% return in the long run every year by investing in index funds.
but you cannot make this average return by investing in mutual funds. investing your income money consistently in index funds can make you rich millionaire in your retirement period.

the people who want to make a fortune through the stock market with low risk in the long run. they always prefer to invest in index funds.

so you don’t need to have hundred and  thousand dollars to start your investing in index funds. but you need a big amount of money to invest in mutual funds.

disadvantage of index funds.

there is lot of business stock like apple, amazon extra.. make more and high return than index funds.

when you compare the index and business share of stocks. the growth rate difference are high.

if you invest in company stocks you can make average of more than 20 percent return per year. but you can not make this type of return in your index funds.

if your the person who have right and high level of knowledge in investing in business stocks. then you don’t have to invest in index funds. which helps you to increase your wealth quickly than index funds.

don’t think index funds don’t have any risk. when comparing others. its also contain the risk in your investing.

made your decision

consider everything yourself in your mind. don’t choose anything irrationally. select the one, that which one mostly full fill your needs in your investing career. that’s where you will find the success.