The main difference between the two is whether there is anyone to manage the fund. Active fund means that the choice of industries and individual stocks is decided by fund companies and fund managers, which are mostly used for ordinary stock, hybrid and bond funds. Passive fund means that fund companies and fund managers will not participate in the selection of industries and stocks, and are mostly used for index funds.

The advantage of passive funds is that they exclude human factors and do not need investors to consider the management level of funds, while active funds rely on the ability of fund managers, who have great influence and directly determine the performance of funds.