Active funds are classified according to the different investment methods of stock funds: Generally speaking, active funds are a kind of stock funds, and their overall goal is to find sales performance across the sales market, which is just the opposite of passive funds. The main performance of active funds is that investors hand over assets to selected fund management companies, and private fund managers make financial planning, and which funds to invest in are decided by private fund managers.

Advantages of active funds Although active funds rely on private fund managers to customize their development strategies and select stocks, they are actually applied by elite investment research teams and enterprises behind them, which will make more technical, professional and objective management decisions at a very large level, and then get Alpha beyond the sales market level.

Private fund managers are highly conscious in their usual operation and management methods, and can actively lighten their positions in bear market transactions in the stock market, manipulate and lighten their positions, and even obtain excess returns in the ups and downs of the sales market.

Disadvantages of active funds Active stock funds cannot prevent the main role of people and the harm caused by the differences in the level and design style of private fund managers, which will immediately endanger the profits of active stock funds. If the manager of private equity funds changes, it will also damage the sales performance of active equity funds.

Every private fund manager has his own professional field and project investment design style, but the design style of the sales market is constantly changing. Even if the same private fund manager changes a design style that he or she is not good at, he or she will not get the ideal Alpha or even lose money.

The related expenses of active funds are relatively high.