Hybrid funds refer to funds that invest in stocks, bonds and money market instruments. According to the classification standard of China Securities Regulatory Commission, more than 60% of fund assets are invested in stocks. More than 80% of the fund assets invested in bonds are bond funds; Money market funds only invest in money market instruments; A hybrid fund invests in stocks, bonds and money market instruments, but the ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds. Compared with equity funds, hybrid funds have lower expected annualized returns and less risks. Compared with bond funds, the expected annualized expected return is higher and the risk is higher. It provides investors with a tool to diversify their investments among different assets, which is more suitable for more conservative investors.

Hybrid funds are divided into:

1. Partial stock fund (50%-70% stock allocation, 20%-40% bond allocation)

The risk of partial stock funds is high, but the historical expected annualized expected rate of return is also high.

2. Debt-biased funds (20%-40% for stocks and 50%-70% for bonds)

Partial debt fund has low risk and expected annualized rate of return.

3. Balanced funds (the proportion of stocks and bonds is relatively average, about 40%-60%)

The risk and expected annualized expected return of a balanced fund are moderate.

4. Debt-biased funds (the proportion of shares and debts is adjusted according to market conditions)