Is the money of the hybrid foundation gone?
Hybrid funds will not lose everything. The assets held by hybrid funds include stocks and bonds, and generally do not fall to no principal. In other words, in practice, the losses of hybrid funds will not be exhausted, which is determined by various assets held by the fund.
Under normal circumstances, bonds held by hybrid funds generally do not lose money, and only stocks held by hybrid funds will lose money. According to the assets it holds, it is impossible for a hybrid fund to lose all its investment principal. Hybrid funds mainly invest in a basket of stocks or funds, and the rise and fall of the fund is determined by the investment target.
Compared with stock funds and bond funds, hybrid funds have more flexible positions. When the stock market is good, the proportion of stocks can be increased, and when the stock market is bad, the proportion of bonds can be increased. For investors, the investment ratio of stocks and bonds in hybrid funds can change with the change of market conditions.
Hybrid fund is a kind of fund that can invest in stock, bond and money market at the same time. Excellent hybrid funds can get higher returns in a bull market and lower their positions in a bear market, which is more resilient than equity funds.