Active and passive types are about how the fund operates. \xd\ initiative means active management. A fund chooses industries, and the choice of individual stocks is entirely decided by the fund company and fund manager. It is active investment management. Passive management is completely passive, and fund companies and fund managers hardly participate in the selection of industries and stocks, such as index funds. \xd\ Because there are constituent stocks in various indexes, and the weight of constituent stocks is not specified. If it is a passively managed index fund, the fund will invest in these constituent stocks and allocate them according to the weight. It is a completely copied behavior, and there is no need for fund companies to actively choose individual stocks, which are all ready-made. \xd\ The fund management fee of active management type is higher, and the overall strength of the fund company and the level of the fund manager are examined. Passively managed funds have a lower management fee, which is the average income of the index's constituent stocks. The performance stability of actively managed funds is relatively poor, because people's management will fluctuate at a normal level, that is, it is difficult to have a good fund and a poor fund, which is why many people choose funds by ranking, but the results are not particularly good. Passive management funds can't do the best, and they can't do the worst, which is the average level. If you choose a good index, you will also get quite good returns in the long run.