2. Index funds, as the name implies, are fund products with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.). ) as the underlying index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the underlying index. Generally speaking, the index fund aims to reduce the tracking error, make the change trend of the portfolio consistent with the underlying index, and thus obtain roughly the same rate of return as the underlying index.
Difference:
1. Index funds are funds that track indexes. It has a low management fee and is designated to buy stocks in the index.
2. Stock fund means that the fund manager can decide which stock to buy independently, without too many constraints and regulations.
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