Do you invest in mutual funds?
They are a great way to diversify your money across a spectrum of companies and industries.
But what kind of funds should you be investing in?
Which one is better?
The bottom line is this:
Which type of fund will earn you a greater return on your investment?
Let’s take a look…
Active Vs. Passive
An actively managed fund is compiled of stocks picked by a fund manager.
So, what’s a passively managed fund?
It’s simply a fund that mirrors a certain market index. An index fund.
When you invest in an index fund, you are investing a little bit of your money into every company in that index. So if you were to own an S&P 500 index fund, you would own a small part of 500 different companies.
Now for the final question: Which is better?
Take a look at this infographic from BusinessProfiles.com and make the choice for yourself:
I personally prefer index funds. You can probably see why now.
I think they are the best source for the bulk of your retirement investing.
Be sure to check out the specific index funds I recommend based on your age.
If you want to keep growing your retirement investments, you may want to consider these 3 rock solid investments for your retirement portfolio.
Spoiler alert! Index funds are one of the three.