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What is the biggest difference between active funds and passive funds?
Many people who like to buy funds have such doubts about the difference between active funds and passive funds. Then we can see that the investment concepts of these two funds are very different. Funds can be divided into active and passive types. For active funds, such funds will only appear in order to go beyond such benchmark combination. So for passive funds, instead of actively seeking some performance of the market, they try to copy such an index.

Different market concepts

Then the different concepts of the two funds will also determine the relative development of the two funds in the market. And we can also find that there are two kinds of active funds, one is pure index fund. For such an asset, almost all of it is invested in the components of this tracking index. For such an experience, high probability is a concept to realize Man Cang, and we can clearly see what kind of state will continue in the future from the market.

The purpose of investment is different.

For such a problem, we will judge according to the market of such a fund. For another active fund, it is an enhanced fund. For the development model of such a fund, it is also very strengthened. If appropriate adjustments are made according to some major market conditions, such funds will have stronger advantages in the market. Let us feel that such a fund is also difficult to buy, and for some people who don't understand the fund, they dare not buy it easily.

Then there is another kind of fund, which is divided into this passive fund. For passive funds, it is to rely on the concept of such managers and then make a quantitative model. For such a fund, it usually makes us feel that after the computer program completes the investment, it will choose an index as some tracking objects. For such a problem, we also feel really convenient, and we don't have to think too much about buying funds.