first, the profit model of active funds is to earn the management fees of the citizens, which conflicts with the interests of our citizens.

For example, how do you know that a fund is better, that is, when its performance is better, that is, when the people are buying wildly in the big bull market, in fact, the risk is also the highest at this time. At this time, it should be to gradually sell safe-haven bonds or convert them into bonds with low risk, and fund managers have to chase after high prices for performance and scale. Once the stock market plummets, they will suffer heavy losses.

In the bear market, it was supposed to be the best time to open a position with the lowest risk, but at this time, few people bought it, and a large number of people had to redeem it, so the fund manager needed to sell it at a low point.

Second, compared with index funds, there are greater human factors and risks.

Index funds track the market, while active funds are subject to the ability of fund managers, and there are greater human factors, but also face some fund managers' sedan chairs, rat warehouses and interest transfer.

uncertainty is great, and risks are also great

Third, in the long run, the long-term return of active funds is lower than that of index funds

(1) Active funds frequently choose and exchange stocks, which brings a lot of transaction costs, such as taxes and commissions.

The following are the fees to be paid for buying stocks:

(1) Stamp duty: the stamp duty in the A-share market is charged at 1‰, which is levied unilaterally; Buying is free, and selling is taxed at 1‰.

(2) securities commission: according to the provisions of the securities law, the highest commission of securities firms is not more than 3‰, and the lowest commission is .1‰, which is very different, with a difference of several tens of times.

(3) transfer fees: Stock transfer fees is charged at the transaction amount of .2‰ (two-way charge), with the lowest charge from 1 yuan.

(4) dividend tax: the stock dividend tax is charged according to the holding time, and the tax is different for different holding times. Remember that this holding time does not refer to the holding time after dividends, but the holding time before dividends.

(5) Other fees: securities management fee: .2% of the transaction amount will be collected in both directions; Securities transaction handling fee: .487% of the transaction amount is charged in both directions;

(2) The "chasing up and killing down" of active funds will also cause the income to be less than expected (refer to the first item above).

(3) When active funds choose stocks and adjust positions, it is impossible to be just right every time, which also gives the market a chance to beat him.

The result is just like the book Walking on Wall Street: passive finger funds will outperform most active management funds in the long run.