The difference between active fund and passive fund.
I. Active Fund
1. goal: as the name implies, it is a more proactive fund, which is proactive and aims to surpass and defeat the market.
2. Risk-return: Active funds mainly target stocks or futures. Relatively speaking, if concentrated, the risk is greater and the income is higher.
3. Manager's fee: Active funds are highly dependent on fund managers. After all, they need all-round care if they want to make profits outside the market. Otherwise, it is difficult to beat the market, and the natural charges are relatively high. The management fee is generally above 1.2% or even as high as 1.5%.
4. Product diversification: There are many products of active funds, with different targets and even combinations. There will naturally be differences, such as bond funds, hybrid funds and equity funds. 5. Strategy: Active funds are more active in adjusting target portfolios, positions and trends, and will not wait passively.
Second, passive funds.
1, goal: From the name, we can know that the goal of obtaining the average market income is conservative and positive.
2. Risk-return: Most passive funds are represented by bonds and indexes. Relatively speaking, the risk is relatively low and scattered, and the income will not be too high.
3. Management fee: passive funds filter out the influence of human factors on the fund's rate of return and wait for the income to arrive. The management fee is relatively low, generally around 0.6%.
4. Single product: Because passive funds are based on a certain index or variety, they are mostly closed-end funds, such as various ETF funds.
5. Strategy: Passive funds generally do nothing and basically follow the trend, because this is a trend in itself.