New Delhi, Aug. 12 -- Choosing a mutual fund has never been easier. Choosing the right one, however, is a different story.

You have access to hundreds of schemes across dozens of categories. Each mutual fund takes a different approach to wealth creation. But at one point, almost every investor stumbles upon a common question - should I invest in a fund that follows the market, or choose one that actively tries to beat it?

From a practical standpoint, both these approaches have their strengths, but neither is universally better. The right choice ultimately depends on your expectations, investment style, and long-term goals.

Let's understand how index funds differ from other mutual fund categories, and where each fits in your portfolio....