Active stock funds are actively managed. A fund chooses an industry, and the choice of individual stocks is completely decided by the fund company and fund manager. This is a positive investment management. There are also some active equity funds that pursue stable excess returns based on the underlying index. Compared with the enhanced index fund, it relaxes the tracking error and expands the scope of stock investment, so as to give full play to the advantages of active stock selection and obtain higher excess returns.

To put it simply, active equity funds are active investments made by fund managers in order to obtain returns exceeding the index.