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What is the difference between assigning permissions using IAM groups and assigning permissions using managed policies?

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Use IAM groups to collect IAM users and define common permissions for those users. Use managed policies to share permissions across IAM users, groups, and roles. For example, if you want a group of users to be able to launch an Amazon EC2 instance, and you also want the role on that instance to have the same permissions as the users in the group, you can create a managed policy and assign it to the group of users and the role on the Amazon EC2 instance.

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