Active funds are classified according to different investment philosophies of stock funds: Generally, active funds are funds that seek to achieve performance that exceeds the market, which corresponds exactly to passive funds.

The specific performance of active funds is that investors hand over their funds to the selected fund company, and the fund manager performs asset allocation. The fund manager decides what the fund invests in.

So what are the disadvantages of active funds?

Disadvantages of active funds: 1. Active funds. Choosing active funds gives up some options and limits one's own performance. The fund manager cannot decide what stocks to buy.

It is suitable for investors who lack knowledge and are still in the entry-level stage of investment.

2. The investment target chosen by the fund manager is not the investment target he wants to choose, and he may miss some fund investment opportunities as a result.

3. The strong dependence on fund managers increases the investment risk of the fund, so the choice of professional fund managers and fund managers is extremely important. Any decision made by the fund manager will affect the expected net return of the fund.

4. Active funds have higher requirements for investors’ professional capabilities and allocation levels, and will bear greater risks than passive funds.