The risk of hybrid funds is lower than that of equity funds, but the expected return is higher than that of bond funds, which is suitable for more conservative investors.
What is a growth fund? What are the characteristics?
Equity funds that focus on investment in growth stocks are called growth stock funds. Growth fund belongs to the fund with the highest risk and the greatest return. Its focus is not on the current price of the stock, but on the expectation that the future stock price performance will be better than the market average.
What is a balanced fund? What are the characteristics?
Balanced funds aim to balance long-term capital and stable income. Usually, a certain proportion of funds will be invested in fixed-income instruments, such as bonds and convertible corporate bonds, in order to obtain stable interest income and control risks, and the rest will be invested in stocks to pursue capital gains.
Balanced funds not only buy a certain proportion of growth stocks, but also buy some value stocks. It is a relatively stable fund type, and its risk-return characteristics are between growth funds and value funds.
What is an index fund? What are the characteristics?
Index fund is a kind of fund with the principle of fitting the target index and tracking the change of the target index to realize the synchronous growth with the market. The investment of index funds adopts the investment strategy of fitting the target index return rate, and invests in the constituent stocks of the target index in a diversified way, so that the stock portfolio return rate fits the average return rate of the capital market represented by the target index.