From the classification of funds, if more than 80% of a fund's assets are invested in stocks, it is called a stock fund, and if more than 80% of a fund's assets are invested in bonds, it is called a bond fund. If a fund only invests in the money market, it is called a money fund. If more than 80% of a fund's assets are invested in other funds, it is called FOF, that is, the fund in the fund. If a fund can invest in stocks, bonds and currencies at the same time, and there is no strict requirement on the ratio, it is called a hybrid fund.
It can be seen that the biggest difference between hybrid funds and equity funds is that equity funds have more than 80% requirements for stock positions, while hybrid funds do not.
Because equity funds require more than 80% of assets to invest in stocks, even if there is a bear market, the stock position should be higher than 80%. Therefore, in a bear market, the withdrawal of equity funds is often relatively large.
It is precisely because of the flexibility of hybrid funds that ten or twenty times more long cattle funds in the fund market are basically hybrid funds. Of course, in practice, some hybrid funds hold more than 80% positions for a long time.
The specific position of the fund is related to the market judgment and investment style of the fund manager. Excluding index funds from stock funds, stock funds have very high requirements for fund managers' stock selection ability, which is similar to that of hybrid funds. Hybrid funds require fund managers to have very strong stock selection ability and strong stock-debt balance ability.
From the flexibility of position adjustment, the long-term investment of hybrid funds is more cost-effective, but it can't be generalized. Equity funds that do better also have long-term annualized income. Ultimately, it depends on the ability of the fund manager.