Contract funds are classified according to their organizational forms, including contract funds and corporate funds. At present, domestic funds are all contractual funds, and each fund operates according to the fund contract. After investors buy a fund, they will own a part of the fund. Corporate fund is a popular form in the United States. Only one fund is registered as a company, and investors buying the fund is equivalent to participating in the company. At present, there is no enterprise fund in China.

If we insist on long-term investment, index funds can get the average return of the market. In general, no index foundation is seriously behind the market average, but don't expect to surpass the market significantly. And ordinary stock funds, if the fund company has great skills, may lead the market significantly, and of course, it may lose in a big mess. Comparatively speaking, ordinary equity funds are more radical and may win or lose, while index funds are more moderate.

However, as a result of long-term investment, the investment results of index funds are better than those of ordinary stock funds as a whole. Because the management fee of index funds is cheap, the investment results will be significantly better than most ordinary stock funds with compound interest effect. Of course, this requires a long investment time, such as 10 years. In a certain period of time, index funds may lose a lot, so investment index funds need to persist and ignore the market fluctuations in the middle. If you have spare money, it is estimated that it won't take long. It is more appropriate to buy index funds and save money.