Being in managed funds and index funds does not give you any diversification benefits. Its entirely dependant on what's inside each.
You can have a mutual fund and index funds that have a very similar selection of equities. The only thing giving you diversification would be if your mutual funds had other products inside. You could purchase those diverse products yourself without paying the ridiculous management fees.
HemptheHealer t1_j6k00c5 wrote
Reply to Are index funds really better than manage funds? by Catchthedisc
Being in managed funds and index funds does not give you any diversification benefits. Its entirely dependant on what's inside each.
You can have a mutual fund and index funds that have a very similar selection of equities. The only thing giving you diversification would be if your mutual funds had other products inside. You could purchase those diverse products yourself without paying the ridiculous management fees.