What is the difference between mutual funds and index funds?

What is the difference between mutual funds and index funds?

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Quick Summary
Mutual funds and index funds are both popular investment vehicles, but they operate differently. Mutual funds are actively managed and can be sector-specific or hybrid, investing in a variety of stocks. Index funds, on the other hand, passively track a specific market index, holding a collection of stocks that mirror that index's composition.

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In mutual funds are allocated on sector/industry basis and buy shares from different sectors where as Index funds are combination of specific stocks
The difference between index funds and mutual funds are really very simple. mutual funds may be specific hybrid or equity.
In both cases , finally the funds will be parked in blue chip stocks only

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