It is to look at those funds that are artificially selected and participated, such as artificially deciding the stocks and positions to be invested, and deciding when to add positions, reduce positions and change positions. These are all determined by subjective initiative. Passive funds are generally similar to index funds, mainly tracking the index and investing in the constituent stocks of the index. Of course, there will be human factors. The best understanding of passivity is model selection investment. For example, in the recent hot Alpha Dog Challenge Go event, human participation is very low, but everything is still inseparable from the initial human participation, because even if the model chooses to vote or invest in artificial intelligence, the program is still developed by people.

For private equity funds, managed funds are generally active managed funds and unstructured products, and funds are mainly raised from high-net-worth customers. There is also 2% management fee and 1% subscription fee. When you just buy a product, you usually charge a subscription fee. Investment scope depends on contracts, generally stocks, bonds, futures, etc.

The parent fund, usually FOF, is a fund in the fund, and the investment scope is that the money of FOF fund is invested in another fund product, which belongs to the portfolio fund strategy. Also raise funds from high-net-worth customers. There are management fees and subscription fees. However, FOF funds have to pay subscription fees twice, and they also have to pay subscription fees when buying FOF funds. Then, when the FOF fund distributes other products, it must pay the subscription fee for the other products. In short, the investment style of the parent fund is relatively stable, and the funds are allocated to management funds with different strategies.

The so-called self-management trust is to raise funds to invest in unspecified projects and manage the investment as needed. Generally, it operates in the mode of fund pool, compared with those trust products whose investment targets are determined. Generally, there are clear investment ranges, but if you choose a lot within these ranges, you can invest in better projects.

Actively managed funds are often called funds. After raising, a fund manager invests his money in his favorite stocks and bonds, which requires a lot of management costs, unlike passive funds, such as index funds, which can invest in the corresponding stocks in proportion after raising.