1. The biggest difference between active funds and passive funds lies in whether it depends on the personal ability of the fund manager. Active funds depend entirely on the ability of fund managers, and the personal ability of fund managers directly determines the performance of funds. Whether its income is higher than the market average or lower than the market average depends entirely on the choice of fund managers. Passive funds are basically not affected by the personal ability of fund managers, and obtain average market returns by investing in constituent stocks.

2. Active funds and passive funds bear different risks. Because active funds rely entirely on the personal ability of fund managers to invest, the risks they bear will become greater. Fund managers are not omnipotent, they can't master all fields, and they can't foresee the policy orientation at any time. Then the decisions made will lag behind and the risks will increase. Relatively speaking, the risk of passive type will be much smaller.

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1. Active funds are classified according to the different investment concepts of stock funds: Generally speaking, active funds are funds whose goal is to pursue performance beyond the market.

Second, the active fund investment object

1. Funds are divided into stock funds, bond funds, hybrid funds and money market funds according to different investment objects.

2. Equity funds refer to funds in which more than 80% of fund assets are invested in stocks, such as Huitianfu Advantage Selection. Bond funds refer to funds in which more than 80% of fund assets are invested in bonds, such as Huaxia bonds.

3. Hybrid funds refer to funds whose ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds, such as Harvest Theme Selection. Money market funds refer to funds that only invest in money market instruments, such as Haifutong currency.

Third, the concept of active fund investment.

1. According to different investment concepts, funds can be divided into active funds and passive (index-type) funds. Active fund is a kind of fund that tries to achieve performance beyond the benchmark portfolio. Unlike active funds, passive funds do not actively seek to outperform the market, but try to replicate the performance of the index. Passive funds generally choose a specific index as the tracking object, so they are often called index funds.

2. Index funds can be divided into two types. One is pure index fund. Almost all its assets are invested in the constituent stocks of the tracked index, and almost always in Man Cang. Even if the market can clearly see that it will continue to decline in the next six months, it will stay in the state of Man Cang and will not make a positive market judgment. Another kind of index fund is the index enhanced fund. This kind of fund is based on pure indexed investment, and is adjusted appropriately according to the specific situation of the stock market.

Fourth, passive funds. Passive funds generally choose specific index stocks as investment targets, do not actively seek to surpass market performance, but try to replicate the performance of the index, so they are often called index funds.