What is the difference between a mutual fund and an index fund.

A) Mutual funds are managed actively by professional fund managers, while index funds track a specific market index passively
B) Mutual funds track a specific market index passively, while index funds are managed actively by professional fund managers
C) Mutual funds have a higher expense ratio than index funds
D) Mutual funds have a lower expense ratio than index funds
Answer: A) Mutual funds are managed actively by professional fund managers, while index funds track a specific market index passively