<human>:  What is the difference between a mutual fund and an index fund?
<bot>: The main difference between a mutual fund and an index fund is that a mutual fund is actively managed by professional investors while an index fund is passively managed, meaning it is designed to replicate a pre-selected stock market index or benchmark. Mutual funds also may have higher fees and require higher minimums to invest, while index funds typically offer lower fees and lower investment minimums due to their passive approach.