In the fund market, there are many types of funds that investors have never heard of, such as active equity funds. Many people who just entered the fund market don't know anything about this type of funds, and they don't know what it is and what its characteristics are. Let's talk about active equity funds in detail.

what does active equity fund mean?

active equity funds are also called active funds. To put it bluntly, it means that fund managers take the initiative to invest in order to obtain a return that exceeds the index, and it is a fund with the goal of seeking performance beyond the market. Corresponding to active equity funds are passive funds, which usually have the characteristics of not actively seeking performance beyond the market. The difference between the two is that the investment concept is different, one is active and the other is passive.

Public Offering of Fund products mainly invested in stocks can be classified into two categories: index funds and active equity funds. Active equity funds mainly invest in wealth management products such as stocks, stock types, index types and bond funds. The characteristic of investing in this kind of wealth management products is to have the ownership of these products, but the income of these products cannot be guaranteed. Equity products are relative to fixed income products.

Active equity funds are active management. A fund chooses industries, and the choice of individual stocks is entirely decided by the fund company and fund manager, which means active investment management. There are also some active equity funds that pursue stable excess returns based on the target index. Compared with the enhanced index fund, the tracking error is relaxed and the scope of stock investment is expanded, in order to give full play to the advantages of active stock selection and obtain higher excess returns.

after the investment period is extended, the active equity funds have passed through several rounds of bull-bear conversion and market switching with excellent results, bringing excellent long-term returns to the holders.

after reading the above introduction, I believe you have a more detailed understanding of active equity funds. Active equity funds are very popular in the market, but this type of fund is relatively risky.