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Which investment is riskier: index funds or mutual funds? I am a senior with a low risk tolerance.



Our response:

This previous Investing Questions question may help you understand the difference between mutual funds and equities: “Which is better: equities or mutual funds?”

Since mutual funds and ETFs both hold a mix of investments and investment types (e.g. equities or bonds), different funds will have different levels of risk. A financial advisor can help you determine what level of risk is right for you based on your personal financial situation and risk tolerance. Before you work with a financial advisor, check their registration.

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