2. Income and risk are different: Generally speaking, the income and risk of equity funds are relatively high. On the one hand, equity funds aim to pursue long-term capital appreciation and seek rapid capital growth, thus bringing capital appreciation. Facing system risk, non-system risk and management risk. The stock itself is a high-risk investment, and the stock fund with the stock as the investment target is naturally more risky. On the other hand, when the stock market is not good, equity funds can actively avoid risks, and the income may be slightly better than that of index funds. The risk and return of index funds are relatively low compared with stock funds. The investment of index funds is to invest in stocks according to the distribution of relevant stock market indexes, so that the fund return rate is close to the market index return rate. It mainly includes opening positions, reinvesting and tracking adjustment. Generally, the index is selected first, then the portfolio is constructed, then the weight of the portfolio is adjusted, and finally the error is monitored and adjusted. After buying all the stocks of the underlying index, the return and risk of the index fund are lower than those of the stock fund after weighted average.
3. Different investment targets: stock funds refer to investing no less than 80% of fund assets in stocks, and there are various sectors for investing in stocks; Index funds will only invest in stocks in the corresponding sectors. For the CSI 500 Index Fund, if an investor buys this fund, it is equivalent to buying these 500 underlying stocks.