Is flexible allocation fund a hybrid fund?
1. A hybrid fund refers to a fund whose investment scope is stocks, bonds and monetary instruments, and the ratio of stock investment to bond investment does not meet the provisions of Items (1) and (2) of Article 29 of the Measures for the Administration of the Operation of Securities Investment Funds.
2. Hybrid funds can be divided into partial stock hybrid funds, flexible allocation hybrid funds, partial debt hybrid funds and capital preservation hybrid funds. Flexible allocation fund refers to a fund that invests in a large proportion of flexible allocation between stocks and bonds according to the fund contract. Some flexible allocation funds set the upper limit of stock investment at 95%, while others set the upper limit of stock investment at 80%. However, fund managers are allowed to flexibly adjust the proportion of stocks and bonds according to market changes.
In fact, allocation funds are rarely mentioned, and hybrid funds are enough to explain the investment direction and characteristics of such funds.
The main difference between the risk and fluctuation characteristics of funds lies in the size of their holdings. For example, some equity funds have a shareholding ratio of 80%, while hybrid funds have a shareholding ratio of 80%, and some allocation funds have a shareholding ratio of 80%, so the name of the classification is not important. It is important to observe whether the shareholding range of this fund meets your expectations.
Before buying a fund, you should read the prospectus carefully.