Index fund vs. Mutual Fund
An index fund aims to mirror the return of an index. Primarily the S&P index while delivering the lowest costs imaginable. The cost on the Vanguard index fund is just .1%, which is negligible and there are no loads.
Mutual funds simply try to get the best return possible. There is a lot of buying and selling going on. Since the fund is more active there are much higher fees. Sometimes there can be a load up to 6% and the average yearly cost is 2%, which is a pretty big deal over time.
There is no clear cut winner but in my mind I would take an index fund over any mutual fund every day of the week. Not only do you save in fees you save in return as well. 80% of mutual funds lose to the market. Would you make a decision on a mutual fund knowing that there is an 80% chance that you will be wrong? Just go for an index fund instead. You will not get flashy returns, you will just get whatever the stock market will give you. Considering the stock market returns 8-11% a year historically your money will start compounding and growing quickly after a few years. Index funds are a great choice for investors who do not follow the stock market 24/7.