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What is a hybrid fund? What are the types of hybrid funds?
Among the types of funds, one is very special. It can not only buy stocks and bonds, but also invest in the money market when the market is bad. It is the most flexible of all funds, and it is a hybrid fund. So, what is a hybrid fund? What are the types of hybrid funds? How to choose in the investment process?

What is a hybrid fund?

Hybrid fund refers to the fund that can invest in stocks when the stock market is stable and bonds and other products with fixed expected returns when the stock market is depressed according to the fund contract. Its purpose is to fully maintain flexibility and facilitate investors to choose flexibly according to their own requirements.

According to different risk preferences, hybrid funds can be divided into three types: partial stock hybrid funds, partial debt hybrid funds and balanced hybrid funds.

1, partial stock hybrid fund

Partial-share hybrid fund means that the investment target of hybrid fund is mainly stock investment, accounting for more than 60%-80% of the total assets of the fund, and bond investment accounts for about 20%-40% of the total assets of the fund.

The expected return of partial stock hybrid funds mainly comes from stock investment, which is relatively risky.

2, partial debt hybrid fund

Debt-biased hybrid fund means that the investment target of hybrid fund is mainly bond investment, which accounts for more than 60%-80% of the total assets of the fund, and stock investment accounts for about 20%-40% of the total assets of the fund.

The expected return of the partial debt hybrid fund mainly comes from bond investment, and the relative risk is relatively small.

3. Balanced mixed fund

Balanced hybrid fund means that the investment target of hybrid fund is balanced in the proportion of bonds and stocks, and the proportion of stock and bond investment in the total assets of the fund is about 50%.

The expected return of balanced hybrid funds mainly comes from stock and bond investment, and the relative risk is moderate.

Therefore, the hybrid fund is a good investment target, and you can choose the appropriate investment varieties according to your own investment risks. Tips: Financial management is risky, and investment needs to be cautious.