1. Difference in distribution ratio of raised funds

Hybrid funds are mutual funds with growth stocks, income stocks and fixed income investments such as bonds, while stock funds mainly invest in stocks, and the proportion of fund assets investing in stocks is not less than 80%, which is higher than that of hybrid funds.

2. The difference between profitability and risk

Because most of the funds of equity funds are invested in stocks, their risks and returns are higher than those of hybrid funds.

In short, investors with relatively weak risk tolerance can consider allocating some hybrid funds. On the contrary, for investors with strong risk tolerance, we can consider allocating some equity funds.

Hybrid funds refer to funds that invest in multiple financial instruments (such as stocks and bonds) at the same time. Its risk is generally smaller than that of stock funds, and its expected return is generally higher than that of bond funds, which is more suitable for more conservative investors.

Advantages Some excellent hybrid funds can get the same income as equity funds in a bull market, and resist falling in a bear market. In short, they can go up and down, so hybrid funds are more favored by investors with high risk tolerance.

type

1. Partial stock fund: the proportion of stocks is greater than that of bonds, the proportion of stock allocation is 50%-70%, and the proportion of bonds is 20%-40%;

2. Partial debt fund: the proportion of bonds is greater than that of stocks, the proportion of stock allocation is 20%-40%, and the proportion of bonds is 50%-70%;

3. Equity-debt balanced fund: the proportion of stocks and bonds is equivalent;

4. Allocation of funds: flexibly adjust the allocation ratio of funds according to changes in the financial market.

Equity funds, also known as equity funds, refer to funds that invest in the stock market. Because in the product category of funds, there are many kinds of funds, except stock funds, bond funds, stock-debt mixed funds, monetary funds and so on. Equity funds mainly invest in stocks, so the fund is affected by the fluctuation of the stock market, and the risk of equity funds in fund products is relatively large.

Types of stock funds

1. By stock type: mainly preferred stock funds and common stock funds. Preferred stock funds have relatively stable income and less risk, and mainly invest in stocks of high-quality enterprises to earn dividend income; But ordinary equity funds pursue capital appreciation brought by long-term investment;

2. According to the degree of diversification of fund investment, there are mainly ordinary stock funds and specialized funds. The former mainly invests in various common stocks in a diversified way; The latter is to invest in some special stocks;

3. According to the investment purpose of the fund, it is divided into capital appreciation fund, growth funds fund and income fund. The pursuit of capital appreciation funds is that capital can grow rapidly and bring benefits, and the benefits are also high when the risks are high. Growth fund is a common stock with growth potential; Income-oriented funds pursue stable income.