1 Reason Why Passively Managed Index Funds Could Save You More Money Than Mutual

The majority of index funds are passively managed and aim to match a specific benchmark, such as the S&P 500, Russell 2000, or Nasdaq Composite. On the other hand, mutual funds are actively managed and aim to outperform the indexes they track, with a manager selecting the underlying stocks.

It's not enough to save and invest for your golden years. As you plan for retirement, it's important to keep your eye on several factors, including how much you're paying in sales loads, management fees, and higher taxes due to frequent trading. And it's taxes that set passively managed index funds apart from mutual funds. Here's why.

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Passively managed index funds are dramatically more tax-efficient than mutual funds, allowing you to keep more of your investment returns. Here are four reasons index funds generally offer tax advantages that actively managed mutual funds can't:

Turnover rates: Index funds normally have lower

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/1-reason-why-passively-managed-200500050.html)