Hybrid funds adopt both aggressive and conservative investment strategies, and their returns and risks are lower than those of stock funds and higher than those of bonds and money market funds. It is a wealth management product with moderate risk.
Compared with money funds and bond funds, hybrid funds have higher returns than money funds and bond funds because they invest in stocks in a certain proportion. However, due to the lower voting investment limit of hybrid funds, the proportion of stock investment is much lower than that of stock funds, so the risk of hybrid funds is also lower than that of stock funds. Hybrid funds belong to a relatively compromise investment scheme, with moderate risks and returns.
Compared with stock funds, hybrid funds can reasonably allocate the investment ratio of stocks and bonds according to different opportunities because of their flexible position adjustment, and even become the most active stock funds or the purest bond funds. When the bull market comes, you can increase the proportion of stock investment to increase income, and when the bear market comes, you can reduce the proportion of stock investment and increase the proportion of bonds to reduce and avoid risks.
Because hybrid funds have the characteristics of "attacking in advance and defending in retreat", fund managers can flexibly allocate assets according to market trends through more flexible asset allocation strategies. Therefore, the hybrid fund is especially suitable for investors with average risk tolerance, but I hope it will not be missed in the stock market rise.