Which is more risky, index fund or hybrid fund?
Index funds are risky. Index funds are mainly based on the performance of existing market indexes, and the stock investment positions are generally above 80%, which is a relatively high-risk investment product among fund products. Hybrid funds mainly invest in mixed investments such as stocks and bonds, which are mainly based on market changes and have relatively high flexibility. They may change their positions at any time to avoid the impact of market fluctuations as much as possible, so the risk is relatively low.
What's the difference between index funds and hybrid funds?
1, the investment target is different.
The investment target of index fund is index, which is a kind of fund that tracks various indexes. The investment targets of hybrid funds are stocks and bonds, which are between stock funds and bond funds;
2. Investment risks are different.
Index funds use passive investment to track all kinds of big market, which is greatly influenced by the market. Moreover, because there are many stocks in the index, all the funds will not fluctuate greatly because of individual stock problems, so the investment risk is relatively small. Hybrid funds adopt active investment mode, and will invest in stocks and bonds according to a certain proportion, and their investment risk is between stocks and bonds. Compared with index funds, the risk is relatively large;
3. The estimated income is different.
The expected return of hybrid funds is usually higher than that of index funds.