Index Funds vs Active Funds & Diversification Explained

What’s the difference between index funds and actively managed funds? And how is asset allocation different from diversification? In this quick investing lesson, learn how index funds aim to match a market index while actively managed funds use professional managers to try to outperform the market. You’ll also learn how asset allocation decides where to invest across different asset classes, while diversification spreads investments to help reduce risk. Simple investing and finance concepts explained in seconds. #Investing #Finance #IndexFunds #Diversification #PersonalFinance

Added 13 Aug 2026