Hybrid funds are * * * mutual funds, and their portfolios include fixed-income investments such as growth stocks, income stocks and bonds. The purpose of hybrid fund design is to let investors diversify their investments by choosing a fund type, without buying different styles of stock funds, bond funds and money market funds.

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. Some well-run hybrid funds will even exceed the level of equity funds. Hybrid funds are different from stock funds, bond funds and money market funds.

Money market funds only invest in money market instruments, and the net share value is always maintained at one yuan, which has the characteristics of low risk, low income, high liquidity and low cost. Money market funds are called quasi-savings, which can be used as a good substitute for bank deposits and a tool for cash management. 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.

Second, the classification of hybrid 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.

Hybrid funds are divided into: 1 according to the proportion of asset investment. Partial stock funds (50%-70% share allocation and 20%-40% bond allocation) have higher risks, but the historically expected annualized rate of return is also higher. 2. Debt-biased funds (stock allocation ratio is 20%-40%, bond ratio is 50%-70%) Debt-biased funds have low risk and historically expected annualized rate of return. 3. Balanced funds (the proportion of stocks and bonds is relatively average, about 40%-60%) The risks and expected annualized returns of balanced funds are relatively moderate.