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Index Funds vs. Mutual Funds? Which One Is Better?

I read somewhere that Index Funds have more potential than Mutual Funds - SIP. Index funds as name suggest - invest in an index.  Warren Buffett won $1 million using Index funds.

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So my question is what exactly are major differences between Mutual Funds And  Index Funds ?

Could anyone flash some light on Index Fund vs Mutual Funds?

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