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What is the main basis for the division of active funds and passive funds?
According to different investment concepts, it can be divided into active funds and passive 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.

Active funds and passive funds are suitable for different investment scenarios, and investors can choose according to their needs.