1. There are few human factors. The active foundation adjusts the investment ratio from time to time, and how to adjust it depends on the fund manager's opinion, which has great human factors.

passive funds, that is, index funds, are stocks selected according to the algorithm. Once selected, they rarely move. The risks and benefits of passive funds are not determined by the fund manager, but by the whole market. It is a product that wants to copy the market rate of return. In the long run, the income of passive funds is higher and more stable.

2. Reduce risks by diversifying investment. Because the index fund bought hundreds of stocks at one time, its income was the same as the corresponding index income, which reduced the risk as a whole.

3. The performance is transparent and open. As long as investors see the rise and fall of the target index tracked by the index fund, they can generally judge the change of the net value of the index fund they invest in, and how much profit or loss there is.

4. The cost is relatively low. Jin Jiwo pointed out that index funds use the investment strategy of tracking the index, and fund managers don't need to worry much, so the management fee is relatively low.

The advantages of index funds can also be counted as disadvantages. One * * * has four

1. It is risky. Index funds are stock funds, and all they hold are stocks. When the market is not good, index funds are at risk of plunging. Because the index fund tracks the index faithfully, if the index falls, it will fall, and no one will keep the position, which will cause huge losses in a bear market.

2. The positions are scattered. Jin Jiwo pointed out that the diversification of positions means that index funds buy hundreds of stocks, such as CSI 3, which means holding 3 stocks, but each one holds few, and every support means that they can't enjoy the extremely good returns of individual stocks. In the historical stock market, active funds have higher profits.

3. It is not suitable for admission at all times. When the stock market is not good, the index will follow the footsteps of the market. At this time, entering the market will lead to blood loss.

4. There is no income from new shares. "Playing new shares" is a cake given to investors by the market, but because he needs the corresponding stock market value, and index funds don't, he can only sigh.