Bond funds mainly invest in bonds. According to China Securities Regulatory Commission's Administrative Measures for Public Offering of Securities Investment Funds, bond funds refer to funds in which more than 80% of fund assets are invested in bonds. Bond funds are usually less volatile than equity funds, so investors usually regard them as investment tools with moderate returns and risks.
Hybrid funds refer to funds that invest in stocks, bonds and money market instruments, but the ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds. Generally speaking, according to the different asset allocation, hybrid funds can be divided into some stock funds, some bond funds, stock debt balance funds, flexible allocation funds and so on.
Money market funds invest in money market instruments. According to the fund classification standard of China Securities Regulatory Commission, money market funds only invest in money market instruments. At the same time, hybrid funds invest in stocks and bonds, and achieve a balance between income and risk by investing in different asset classes. Growth funds refers to the fund whose basic goal is to pursue capital appreciation, and less consideration is given to the current income. Mainly invest in stocks with good growth potential.