According to the management style, funds can be divided into active funds and passive funds.

Active funds are fund managers who rely on their own stock selection and timing methods to beat the market and obtain excess returns. In fact, such funds vary greatly, and the returns vary greatly in different market conditions.

For example, in 2018, the overall market situation was bad, and most stock bases lost money, with an average loss of 23%, but in 2019, the market situation improved, and the average income reached 40%; At the same time, the performance of the funds managed by different fund managers is also very different. You choose a fund to choose a good fund manager. But to be honest, many star fund managers are also packaged by the company. Moreover, good past performance does not mean good future performance, so there is no guarantee.

Therefore, the risk return characteristics of active funds are very similar to those of your own stocks, except that when you have no time to study the market, you can use funds to invest in the stock market.

The passive fund is actually a direct investment index. It does not use the fund's investment research team to study and select individual stocks, so the management fee is relatively low. The return you get is the return on the index.

The simplest configuration scheme is to use "100 age" as the proportion of stock investment, because the younger you are, the stronger your ability to take risks. Because you still have plenty of time, and there are opportunities to turn over the stock market, there will always be a bull market in your long life.

For example, you can invest 70% of the total earning assets in stocks at 30.

For example, you have a total of 1 million yuan, about 20% of which are equipped with cash type financial products to meet the liquidity needs. If you have already configured insurance and the remaining 800000 yuan can be invested in profitable assets, then 560000 yuan can buy stocks or stock funds.

I suggest novices take out a little money to invest in stocks and learn. If they do not invest in real money and silver, they will never have a deep understanding of the market. The rest can buy funds.

But from my own experience, especially in the long run, the average performance of active fund managers cannot catch up with the market, so I can invest a large proportion of more than 500000 yuan in index funds. How can I invest in index funds?

One is the investment of stock funds, and the other is fixed investment.

Fixed investment is to invest a certain amount in a certain period, such as 10000 yuan per month. The biggest advantage is that when the market fluctuates, the cost can be diluted. Therefore, the volatile market is most suitable for fixed investment, and A-share is absolutely suitable.

At the same time, fixed investment is to automatically deduct money from you every month (of course, you can choose weekly or quarterly). In fact, it is also a bit of mandatory saving to avoid spending money indiscriminately.

However, if your current stock capital is large, you can also directly configure an index portfolio.

（Writer：Dirick）