Hybrid funds include fixed-income assets such as bonds and equity assets such as stocks. The investment strategy of hybrid funds is more diversified, and assets can be flexibly allocated according to market conditions in order to pursue higher risk-adjusted returns. Hybrid funds are suitable for investors with relatively high risk tolerance, who hope to achieve better return on investment through the combination of different assets such as bonds and stocks.
What are the characteristics of pure debt funds?
First of all, the income of pure debt funds is relatively stable. Earnings are mainly obtained through interest income and maturity payment of bonds, so they will not be affected by stock market fluctuations. Because there is a clear timetable for bond principal and interest payment, investors can more accurately predict the fund's income, thus obtaining relatively stable income.
Secondly, pure debt funds have low risk. This is because pure debt funds invest in bonds with higher credit ratings and have lower default risk. At the same time, pure debt funds also benefit from the regulation of national monetary policy, and the government's macro-control measures help stabilize the bond market, thus reducing the risk of funds.
Finally, pure debt funds have good liquidity. It invests in the liquid bond market, which means that investors can buy and sell fund shares at any time to meet their own capital needs. This flexibility enables investors to allocate funds according to their own needs and better cope with market changes.