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Fortune
Fortune
Kevin L. Matthews II

BIZARRE: How to choose between index funds and mutual funds | Mind Blowing Facts

Illustration of two pie charts overlapping like a Venn diagram, one yellow and one green. (Credit: Illustration by Fortune; Original photo by Getty Images)

One of the first questions for beginning investors centers around what investment options you should choose for your portfolio. For many, the prospect of spending time researching dozens of individual stocks and other asset classes isn't the most appealing. This is why both index funds and mutual funds have become a mainstay for nearly 70 million investors. 

But what is the difference between index funds and mutual funds, and when would it make sense to invest in one over the other?

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