Who is more risky, stock fund or index fund?

For stock funds and index funds, index funds are more risky.

Index funds belong to high-risk and high-return investment varieties, which are the most profitable varieties in the upward trend of the stock market and the most injured varieties in the downward trend. Other types of stock funds have smaller risks and returns than index funds. Investors should have their own opinions when choosing funds, and choose suitable investment varieties according to their risk tolerance.

The main differences between stock funds and index funds are:

1. In terms of investment methods, stock funds invest in promising stocks and securities, while index funds adopt passive investment. Choose an index as the imitation object, and buy all or part of the securities in the securities market according to the index standard, in order to obtain the same income level as the index, and its investment flexibility is far less than that of stock funds.

2. In terms of the ability requirements of fund managers, the operation of stock funds is greatly influenced by fund managers, and the level of fund managers directly affects the income of funds; Because index funds buy all or part of securities containing an index, an index is high and low. The management ability of fund managers has little effect on the income of funds.

3. The difference between risk and return is not obvious. When choosing securities, an index is also based on blue-chip stocks and large-cap stocks, so an index can basically reflect the whole stock market. Because the stocks invested by equity funds are also affected by the whole stock market, they will not be significantly better than index funds. Equity funds can actively avoid risks when the stock market is in a downturn. In the case of bad stock market, the return may be slightly better than that of index funds, but it is not particularly obvious. This aspect mainly depends on the ability and level of fund managers.