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HOW IS THIS PORTFOLIO DIFFERENT FROM AN INDEX FUND OR A TYPICAL MUTUAL FUND?

April 26, 2017different fund index mutual fund portfolio

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HOW IS THIS PORTFOLIO DIFFERENT FROM AN INDEX FUND OR A TYPICAL MUTUAL FUND?

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This portfolio account holds 30 or less securities vs index funds which can hold thousands of securities or typical stock mutual funds that normally hold 50-200 securities. Unlike an index fund, this portfolio is actively managed to choose the best securities while avoiding problematic securities. With 30 or less securities, the manager of this portfolio can spend more time researching each investment vs the limited amount of time that can be spent on each security when a mutual fund owns 100s of securities.