In the process of our investment, many people tend to pay more attention to the risk. By risk, we mean the possibility of losing the principal. In the fund market, according to the size of risks, we divide funds into three types: low risk, medium risk and high risk. Recently, a friend asked me, is the risk of hybrid funds high or low? Let's take a look at the relevant situation together.

Hybrid funds, literally, have a wide range of investments. In fact, this is a combined fund, which has both growth-oriented and income-oriented stocks and some fixed-income bonds, realizing diversified investment of funds. In terms of risk, it is also relatively scattered.

If we compare hybrid funds with other funds, the risk of hybrid funds is lower than that of high-risk stock funds, but higher than that of low-risk monetary funds and bond funds. Therefore, from this perspective, hybrid funds are neither high-risk funds nor low-risk funds. Therefore, hybrid funds belong to medium-risk funds.

In the fund market, stock fund is a high-risk fund. On the basis of stock funds, some funds are invested in currency and bond markets by using the principle of portfolio. Diversified risks and formed today's hybrid funds.

This kind of portfolio will not cause serious losses to investors because of the continuous decline of a certain market. It will balance the income of the whole fund. This is a big advantage of hybrid funds compared with other funds.

Of course, we only divide hybrid funds into medium-risk funds according to the size of risks. If we subdivide hybrid funds into partial stock funds, partial debt funds, allocation funds and balanced funds, the risks of these four types of hybrid funds are different.

Although hybrid funds have the advantages of risk diversification and high flexibility. However, hybrid funds also have many shortcomings. For example, the ability of fund managers is tested, because hybrid funds have diversified investments. Fund managers need to have a full understanding of the stock market, money market and bond market. To ensure that the hybrid fund can get the ideal income. So many hybrid fund managers may only have a deep understanding of a single market, and other markets will not be very thorough. This leads to their different investment habits and different allocation of funds.

So, what should I pay attention to when buying a hybrid fund?

1, distinguish whether the hybrid fund you need to buy is partial stock type, partial debt type, balanced type or allocation type.

2. After determining what kind of hybrid fund it is, fully understand the influence of the market on the fund.

3. After fully understanding the fund you bought, decide whether to start.

Summary: In the whole fund market, hybrid funds, a medium-risk fund, are often favored by some investors, but when we invest in hybrid funds, we also need to fully understand this knowledge and not blindly invest.