Index fund is a fund product that takes a specific index as the target index, takes the constituent stocks of the index as the investment object, and builds a portfolio by purchasing all or part of the constituent stocks of the index, so as to track the performance of the target index. When an investor invests in a fund, the income is roughly equal to the increase of the index, which is less affected by the investment decision of the fund manager.

The active fund is determined by the fund manager what to buy and how much to buy, and the income depends entirely on the individual level of the fund manager, so it is greatly influenced by the investment decision of the fund manager.

In addition, investors have different investment strategies. For index funds, the investment strategy of fixed investment is generally adopted, while for passive funds, the investment strategy of one-time transaction is adopted.

So, for investors, should we choose active or index funds?

Generally speaking, the goal of actively managed funds is to obtain excess returns, with more flexible positions on the whole and higher requirements for the comprehensive quality of investment managers. In the past, the probability of outperforming the A-share index was greater, but the rate was relatively high.

The goal of index funds is to obtain the average income level of the market, with high positions, little influence by changes in investment managers, more effective in mature markets and relatively low rates.

You can choose according to your investment objectives, risk tolerance and investment preferences.