What's the difference between stock funds, hybrid funds and bond funds?
1.
Compared with hybrid funds and bond funds, equity funds have higher returns. Through expert management and portfolio diversification, equity funds can diversify risks to a certain extent, but the risk of equity funds is still the highest among all fund products, which is suitable for investors with high risk tolerance.
2.
Hybrid funds refer to funds that invest in stocks, bonds and money market instruments and do not meet the classification standards of stock funds and bond funds. According to the different investment ratios and investment strategies of stocks and bonds, hybrid funds can be divided into various types, such as partial stock funds, partial debt funds and allocation funds.
Stock fund is a fund with stocks as its main investment object. Compared with equity funds, hybrid funds have lower returns and less risks. Compared with bond funds, the returns are higher and the risks are higher.
3.
Bond funds mainly invest in all kinds of bonds, with higher risks than money market funds and lower risks than equity funds. Bond funds obtain stable interest income by investing in bonds such as treasury bonds and corporate bonds, which has the characteristics of low risk and stable income and is suitable for the needs of stable investors with low risk tolerance. Therefore, bond funds have the least risk and relatively low returns among the three.
To sum up:
Earnings of stock funds, hybrid funds and bond funds:
Equity funds > hybrid funds > bond funds
The risk of stock funds, hybrid funds and bond funds is: stock funds > hybrid funds > bond funds.