The difference between stock funds and hybrid funds
The investment target of 1 is different. Equity funds, also known as equity funds, refer to funds that invest in the stock market. Hybrid funds are * * * mutual funds, and their portfolios include fixed-income investments such as growth stocks, income stocks and bonds.
The return is different. Stock funds invest in stocks. When the bull market is booming, the return of equity funds is very high, while the return of hybrid funds is relatively not so high, but the security is better.
3 Different risks. The risk of equity funds is higher than that of hybrid funds. It is common for stock funds to lose 50% if they lose a lot, while bond funds lose much less even if they invest in stocks, because the bonds they invest in are very stable.
4 The position requirements for investing in stocks are different. The stock position of stock funds cannot be less than 80%, and hybrid funds are not limited. Hybrid funds can focus on investing in bonds, only one or two stocks, or they can focus on investing in stocks and then invest in several bonds.
Choose stock fund or hybrid fund?
Look at personal risk tolerance and personal investment style. If you are more radical and can take more risks, invest in stock funds. If you think that equity funds are too risky and want to hold them for a long time, it is more appropriate to choose hybrid funds.
Equity funds are very similar to hybrid funds, but the investment targets are different. Don't be too entangled in what type they belong to when choosing. The key point is to see how their funds can rise and what their development prospects are.