Advantages of hybrid funds
1, the portfolio can be invested.
Hybrid funds are * * * mutual funds that combine growth stocks, stocks with expected returns, bonds and fixed expected returns. It has the characteristics of lower risk than stock funds and higher expected return than bond funds. Investors can choose a variety of funds, but they can achieve the effect of diversification and effectively diversify risks.
2. The risk is moderate
The positions of hybrid funds in stock investment are different, and the risk performance is also different, and the risk is moderate to high. Generally speaking, the risk is lower than that of equity funds. Through mixed investment, risks are effectively dispersed.
3. Large choice space
Hybrid funds have various combinations, such as partial stocks, partial debts, different stocks in a single industry, and different stocks in different industries. Investors have a very large choice space, which can satisfy both cautious investors and active investors.
Disadvantages of hybrid funds
Although hybrid funds have a large space for risk selection, for radical investors, such funds cannot meet their investment needs; On the other hand, the risk of hybrid funds with high stock positions is also great, and the fund price fluctuates greatly. Maybe there will be no profit or loss for some time.
Generally speaking, high risk is accompanied by high expected return, and it is the best choice for investors to invest according to their own conditions.
These are the advantages and disadvantages of hybrid funds. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.