Passive investment is an investment strategy, which maximizes income by minimizing buying and selling. Passive investment, also known as buy-and-hold strategy, refers to buying securities for long-term holding, rather than profiting from short-term price fluctuations or market opportunities. The basic assumption of passive investment strategy is that the market will produce positive returns with the passage of time and the gradual accumulation of wealth.

The advantage of passive investment is that investors don't have to spend a lot of time and energy to study the operation of listed companies and analyze the daily changes of individual stocks, but only need to pay attention to various factors affecting market trends; In addition, the cost of passive investment index funds is low, which saves investors a lot of money, which is equivalent to reducing the investment cost. This cost reduction is more obvious as time goes on.

Active investment means that investors strive to maximize the return on investment through active securities selection and timing within a certain investment limit and scope. Usually, investing in stocks and equity funds is called active investment.

Passive investment refers to the investment products with long-term income and limited management as the starting point. Generally, specific index stocks are chosen as investment targets, instead of actively seeking performance beyond the market, they try to copy the performance of the index.

Whether it is active investment based on fundamentals or passive investment based on fundamentals, as long as the fundamental strategy is still effective, the demand and value of fundamental researchers still exist. However, the change of market environment has increased the difficulty of research, and also increased the requirements for research ability, especially the ability to basically face investment transformation and fundamental quantification. How to constantly evolve to adapt to market changes is a problem worth thinking about.