But for ordinary investors, it can't be said that it is active or passive, or it depends on the specific situation of individual investment.
In view of the fact that many people still don't understand the difference between active funds and passive funds, Big Brother Cai will talk about the difference between active funds and passive funds and their respective advantages today. The fund course in the classroom also has a special fund fixed investment course.
Fixed investment is a popular fund investment method at present. Because there are more than 6,000 funds in Public Offering of Fund, which is much more than the stock data, it is not difficult to find a high-quality fund.
Moreover, the performance of stock-related funds will fluctuate greatly, and it is difficult to judge the quality of funds from past performance. The fixed investment of the fund is relatively simple.
Although the fixed investment of the fund is relatively simple, it does not mean that it is enough to find a fund casually. Choosing the right fund is more conducive to asset appreciation. If it is not suitable, the fixed investment may also be disastrous. Students who have studied fund courses in class should understand this.
In the classification of funds, there is a classification that divides funds into active funds and passive funds. Which of these two types of funds is more suitable for fixed investment?
Passive funds usually refer to index funds, because the investment strategy of index funds is to copy the trend of the index as much as possible, so the expected return basically depends on the rise and fall of the index, which is relatively passive.
For example, an index fund that copies the Shanghai and Shenzhen 300 Index, strictly speaking, will buy all the stocks in the Shanghai and Shenzhen 300 Index, and the purchase amount of each stock is determined, which is consistent with the weight of this stock in the index, so that the expected return of the fund is basically consistent with the rise and fall of the Shanghai and Shenzhen 300 Index.
For active funds, the fund manager will pursue more expected returns as much as possible according to his own investment strategy, and will not limit which stock to buy and how much to buy.
Some people may think that when a fund decides to invest, it should choose an active fund because it can create higher expected returns. However, active funds are also more prone to losses and their performance will fluctuate greatly. It may be difficult for netizens who haven't studied the classroom fund course to understand.
In addition, active funds that enter the trough have a greater probability that their performance will not return to the peak. Because the performance of active funds depends largely on the investment strategy of the fund manager, if the fund manager fails, the fund may have been losing money until liquidation. At this time, even if the cost is continuously reduced through fixed investment, it is useless, and eventually it will lose money.
Relatively speaking, the performance of index funds is much more stable, and it is easier to get out of the trough after the fund's net value enters the trough.
Because the stock market will not keep falling, it will naturally rise when it falls to a certain extent. As long as the stock market rises, general index funds will also rise. The advantage of index funds lies in following the general trend, which has little to do with the ability of fund managers.
Therefore, if you make a fixed investment in the fund, Brother Dacai tells you that although buying index funds may not make more money than buying active funds, the probability of making money is greater and the probability of losing money is smaller.
In addition, index funds are better than active funds, not only because of the small number, but also because there are not many factors to consider.
To make a fixed investment in the fund is to want a relatively simple way of fund investment, so relatively speaking, index funds are more suitable for making a fixed investment than active funds. However, although it is relatively simple, people who have never studied the fund course will still look confused and digest it.
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