There are two kinds of industry theme funds in the market: active funds and passive funds. For example, consumer theme stock funds are industry active funds, and consumer theme index funds are passive funds.
If you want to invest in industry funds, should the industry choose active management funds or passive management funds?
In fact, the question is not whether to choose active or passive management form, but whether it is easy for this industry to obtain excess returns, and whether it is easy to choose active or passive management of funds by timing and stock selection.
The first is stock selection. In an industry, if the trend of stocks in the industry is very different, and you can easily choose these stocks with higher returns, then the return of your portfolio will be higher than the overall level of the industry.
If the stocks with the highest increase in the industry are often long-term stable leading stocks, and these leading stocks have a high weight in the industry index, the index will fully benefit from the increase of leading stocks.
Therefore, for industries with high industry concentration and significant leading stocks, it is easier to obtain the beta income of the industry by choosing passively managed funds. If the industry is highly dispersed and differentiated, it is more likely to get more excess returns by choosing active funds managed by outstanding fund managers in the corresponding competence circle.
Then there is the opportunity, mainly for investors' own professional ability. If you are confident to grasp the development trend of the corresponding industry, you can choose active management funds when considering band operation, and passive funds when considering long-term holding.