What's the difference between quantitative funds and general funds?
1 quantitative fund: quantification in quantitative fund actually refers to quantitative investment, which is a process of using computer technology and adopting certain mathematical models to realize investment ideas and strategies. Quantitative fund is a kind of fund management that uses statistical and mathematical methods to guide investment in strict accordance with these strategies.
2 General fund: The income of general fund is mainly related to the ability of fund managers. The income of actively managed funds depends especially on the management operation and judgment of fund managers, so it is usually influenced by the subjective consciousness of fund managers. The index fund is to minimize the tracking error, so the index fund follows the trend of the index.
Through the above comparison, we can find that the advantage of quantitative fund is not to conduct in-depth research on a single listed company, but to use large samples and big data to conduct comprehensive and in-depth mining of stocks in the market.
For quantitative funds, the fund manager pursues that most of the stocks he invests in will rise in the future, preferably by a large margin. Based on the understanding of this probability, quantitative funds tend to invest in stocks in many ways, and the research on individual stocks will not be so in-depth, so the risk of individual stocks is not high, and the risk can only be controlled through frequent operations and diversified investments, so the turnover will be higher.
Generally speaking, quantitative funds may have the possibility of pursuing a sharp rise in most stocks, so they usually focus on diversification and frequent operations to control risks. General funds may study individual stocks more deeply. The above is the introduction of quantitative fund and general fund, I hope it will help you.