1. index fund tracks the index, and the fluctuation is relatively small;

2. The investment sectors of general funds are different, with different volatility and relatively high risks;

3. Steady investors can consider index funds, while active investors can consider general funds.

With the continuous reform and opening up of China's capital market, more and more investment products have entered everyone's sight, and the fund's playing methods are also varied. Different investors have completely different risk preferences, and the types of funds they buy are also different. ETF fund is a kind of index fund, which mainly tracks the rise and fall of the index, with relatively small fluctuation and high security. The investment direction of ordinary funds is different, the corresponding risks are different, and the investors' choices are different.

First, ETF is an index fund, which mainly tracks the rise and fall of the index.

Buffett's advice to many investors is to buy index funds, because many investors can't outrun the market, and buying index funds can outperform the average income of the market.

ETF index funds track the rise and fall of the index. They are less risky, less volatile and more secure.

Two, the general fund investment direction is different, the risk is also different.

Funds issued in the market have different risks because of different investment sectors and varieties.

If ordinary funds invest in blue chips, the risk is relatively small. If you invest in new energy and photovoltaic stocks, the fluctuations are relatively large, and high returns correspond to high risks. Everyone must pay attention to this.

Third, the difference between ETF index funds and ordinary funds

ETF index fund tracks the index, which is relatively less volatile and safer, and is more suitable for conservative investors, especially index funds, with less risk and safer.

Ordinary funds have different risks because of different investment directions. Relatively speaking, ordinary funds are more risky and have higher returns, which is more suitable for active investors.