For fund investment novices, it is a headache to distinguish various funds in the fund investment market. Linked funds are innovative funds in the modern investment market. Like indexes, linked funds are often compared with investment targets. What's the difference between linked funds and general funds? What are the advantages and disadvantages? Let's take a look together.

1, the difference between linked funds and general funds

1) Linked funds are a kind of index, so compared with ordinary funds, they are less dependent on investment managers; The information of its expected return strategy level is more transparent.

2) Compared with other funds, because of its own nature-index funds, the overall cost level of linked funds is relatively low, which reduces the investment cost and improves the convenience of investors.

3) Linked funds can be converted with other funds issued by the same fund company, which is very flexible and convenient, optimizes asset allocation, maximizes expected returns, and meets investors' fund conversion needs.

4) Index fund is a very suitable fund for fixed investment. After the linked fund is issued, investors can make fixed investment, share the risks and meet investors' demand for fixed investment.

2. Investment disadvantages of linked funds

1) Compared with other direct investment funds, linked funds, as index funds, are less dependent on managers, and fund managers cannot effectively avoid risks by changing investment strategies.

2) Compared with other funds, it has higher risks. The investment advantage of linked funds is to reduce costs and improve convenience, but generally the linked objects are stock indexes or stocks, so the risks are greater.

The above are different related contents between linked funds and general funds, and I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.