Hybrid funds usually belong to medium-risk varieties in securities investment funds, and their expected risks and returns are usually higher than bond funds and money market funds, but lower than stock funds. At the same time, hybrid funds take stocks, bonds, etc. as investment objects, in order to achieve a balance between income and risk by investing in different asset classes. The expected risk of hybrid funds is lower than that of equity funds and the expected return is higher than that of bond funds. It provides investors with a tool to diversify their investments among different asset classes, which is more suitable for more conservative investors.
The investment risk of hybrid funds mainly depends on the proportion of stocks and bonds. Generally speaking, partial stock funds and flexible allocation funds have higher risks, but also higher expected returns? ; ? Debt-biased funds have lower risks and lower expected returns? ; ? Equity-debt balance fund has moderate risk and return.