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Explanation of fund terms?
Active fund operation refers to the fund manager's operation of the stocks in the portfolio according to the fund's portfolio strategy and investment theme, and the analysis of the market, industry and individual stocks.

Passive operation is generally an index fund, and the fund manager makes corresponding investment according to the proportion of constituent stocks and stocks in the index copied by the fund. The fund manager himself can't actively choose other stocks outside the index, and generally can't change the proportional weight of each stock in the fund portfolio, which is passive. The investment and research ability of fund managers and fund companies is not high, and the fund management fee will be lower accordingly.

According to the experience of American fund industry, long-term observation of funds, general active investment funds can not outperform index replication investment funds.