1, index fund, as its name implies, is a fund product with specific indexes (such as Shanghai and Shenzhen 300 Index, S&P 500 Index, Nasdaq 100 Index, Nikkei 225 Index, etc.) as the target. ) as the target index, and take the constituent stocks of the index as the investment object, build a portfolio by buying all or part of the constituent stocks of the index, and track the performance of the target index.

2. Equity funds, as the name implies, refer to funds that invest in the stock market, and the stock positions are generally above 60%.

Second, index funds are passive funds and stock funds are active funds.

1. The biggest difference between index funds and stock funds is that index funds are passive funds, while stock funds are active funds.

2. Index funds are used to track market indexes. What the fund manager has to do is to allocate the assets of the fund according to the proportion of the market index, which is better in a bull market; Stock fund is a fund manager who chooses stocks according to his own preferences, personal analysis and the direction stipulated in the fund contract, and determines the allocation ratio, so the fund management is more flexible.

Third, the investment methods are different.

1, the investment mode provided by index funds is more convenient and simple. Because they don't need to choose their own stocks, investors don't need to worry about whether fund managers will change their investment strategies. It doesn't matter who the fund manager is

2. Equity fund (non-index) fund managers have a great relationship. As the saying goes, changing coaches is like changing knives, and the funds managed by different fund managers are often very different. Therefore, investors who choose equity funds need to carefully choose fund companies and pay attention to whether the invested funds are managed by fund managers with strong strength and excellent past performance.

Fourth, the investment cost is different.

Low cost is the most prominent advantage of index funds. Fund expenses mainly include management expenses, transaction expenses and sales expenses. Because index funds adopt the holding strategy and do not need to exchange shares frequently, their costs are generally much lower than those of active funds such as stock funds, and the cost difference in this respect can sometimes reach 1%-3%.

5. Different investment risks

1. index funds mainly face systemic risks, which cannot be eliminated by diversification. When the market is good, index funds rise faster than other funds, and when the market is bad, they fall faster than other funds, lacking resilience.

2. In addition to the risk of market fluctuation, the profit and loss of equity funds also largely depends on the fund manager's choice and judgment of the market and individual stocks. If the stock market skyrockets, and the fund manager doesn't make a correct judgment at this time, doesn't add positions or doesn't have time to add positions, then the income of stock funds will shrink sharply, compared with index funds.

Extended data:

First, the index fund selection method

1, pay attention to the strength of fund companies-fund comes first

When choosing any fund, the strength of the fund company should be the primary factor that investors pay attention to, and index funds are no exception. Although the index fund is a passive investment, the operation is relatively simple, but tracking the underlying index is also a complex process, which requires accurate calculation and rigorous operation process. Powerful fund companies can usually track the underlying index more closely.

2. Pay attention to fund fees-cost wins.

Compared with actively managed funds, one of the advantages of index funds is low cost, but different index funds have different degrees of "low cost", so it is very necessary to minimize the investment cost. Of course, it should be noted that lower fees are important, but the premise is that the fund has good returns. Don't blindly choose index funds for lower fees.

3. Pay attention to the target indicators-the most important.

The core of index fund lies in the index it tracks, so it is particularly important to know the corresponding market when choosing index fund. In addition, investors can also achieve the purpose of asset allocation by investing in different index funds.

Second, buy equity funds.

1, depending on the investment orientation. That is to see whether the investment orientation of the fund is suitable for you, especially the products issued by new fund companies with no operating history. The different investment orientations of the fund represent the future risk and return degree of the fund, so we should choose the stock fund that suits our risk and return preference.

2. Look at the brand of the fund company. Buying a fund is a professional financial service, so the quality of the company providing the service itself is very important. At present, many domestic rating agencies will publish the fund rating results on a monthly basis. Although these results are not widely recognized, putting the rating results of several institutions together can also be used as a reference for investment.

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