1. The funds raised by the fund are scattered and will not be invested in a single stock, resulting in more stable volatility than stocks.

2. The funds raised by equity funds are not 100% invested in stocks, that is, equity funds invest part of their funds in some flexible money markets to ensure the liquidity of funds to deal with redemption, which leads to different returns between funds and stocks.

In a bear market, investors had better buy funds when stocks generally fall. At the same time, purchasing funds through fixed investment can reduce the cost of fund positions and spread risks. When the market rebounds, it can produce a smile curve effect. In a bull market, it is best for investors to buy stocks when stocks generally rise, and the income generated by buying stocks is more than that generated by buying funds.