Active fund is a kind of fund that fund managers choose stocks and timing through their own analysis (including technical analysis and fundamental analysis) to obtain excess market returns.

Active funds are classified according to the different investment ideas of stock funds. Active funds actively allocate assets according to the investment direction, type and investment strategy of fund managers, and their goal is to achieve performance beyond the market.

Extended data:

Although active funds mainly rely on fund managers for strategy customization and stock selection, in fact, with the support of investment research teams and companies, they will make more professional and rational decisions to a great extent, thus winning Alpha beyond the market level.

Fund managers have higher initiative in daily operation and management, and can actively lighten their positions in a bear market, control retracement, and even obtain excess returns in a volatile market.

In order to obtain excess returns, excellent managers will rely on their own investment experience to increase or decrease positions in the changing market style and improve the turnover rate of stocks, so as to obtain excess returns in fluctuations.

References:

Active Fund-Baidu Encyclopedia