Equity funds, also known as equity funds, refer to funds that invest in the stock market. Equity funds invest most of their assets in individual stocks, and the stock position cannot be less than 80%. Stock funds can be divided into preferred stock funds and common stock funds according to different types of stocks.
The difference between hybrid funds and equity funds is reflected in the following aspects:
1, and their investment priorities are different.
There are many kinds of mixed fund investments, including fixed-income investments such as growth stocks, income stocks and bonds, so that investors can diversify their investments by choosing a fund variety without buying various funds with different styles.
Equity funds mainly invest in stocks, and the proportion of investment in stocks is not less than 80%, which is suitable for non-professional investors who want to buy stocks but are worried about the excessive risk of stocks.
2. Their investment income is different.
Generally speaking, in a bull market, that is, when the market is good, the income of equity funds is higher than that of hybrid funds, while in a bear market, that is, when the market is bad, the income of hybrid funds is higher than that of equity funds.
3. Different investment risks.
As we all know, the stock market is volatile and risky. Because most of the funds of equity funds are invested in stocks, and hybrid funds can be allocated in a balanced way, the risk of equity funds is higher than that of hybrid funds.
To sum up, for stable investors with relatively weak risk tolerance, hybrid funds can be considered, and for radical investors with strong risk tolerance, stock funds can be considered.