If you are good at choosing active funds, you can get higher returns than passive funds (index funds) in the A-share market.

Because A-shares are still immature at present, and there are many novice retail investors, some powerful active fund managers can help you achieve higher than the market average income.

However, in mature markets such as US stocks, the performance of active funds is not as good as that of passive funds (index funds) for a long time, which is why Buffett has long suggested that Xiaobai buy index funds (passive funds).

Then, what about the active funds that buy A shares and the index funds that buy US stocks? Us stocks are like this, and a shares are not necessarily.

Because even if you buy an active fund on A shares, you may not get higher returns than index funds. Only active fund managers with strong ability can outperform the returns of index funds.

There are too many fund managers in the market, and their abilities are divided into three or six grades. Luck accounts for a large part of the factors. Moreover, fund managers often change jobs, and the overall transaction cost of active funds is higher than that of passive funds.

Therefore, unless you are good at choosing active funds (fund managers), you'd better choose to invest in index funds.