Mutual funds have been the workhorse of retail investing for decades. They can be passive (index) or active (manager tries to beat a benchmark).
Compared with ETFs, mutual funds price once a day and often have higher fees. In many 401(k) plans they remain the dominant option.
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Mutual fund or ETF?
For most investors starting today in a taxable brokerage account, ETFs win on fees and tax efficiency. Inside a 401(k), a low-cost index mutual fund is equally good.