Fund is a very broad category, and the types of funds are also relatively rich. Usually the classification of funds includes index funds, stock funds, hybrid funds, bond funds and other fund products. So what's the difference between index funds and hybrid funds? Let's get to know each other.

The difference between index funds and hybrid funds

On the one hand, the difference between index funds and hybrid funds can also be presented in two aspects: investment targets and investment methods.

1 investment target: the investment target of index funds is to invest in the index of a stock market; In addition to investing in the stock market, hybrid funds are also used to invest in markets such as bonds and currencies.

2 investment method: the trend of index funds is basically consistent with the index invested; Hybrid funds construct investment portfolios according to different allocation ratios of stocks, bonds and currencies, and different allocations produce different returns.

Index funds and hybrid funds cannot be compared in principle. The biggest difference between index funds and hybrid funds is that index funds belong to passive funds and hybrid funds belong to active funds. Passive funds do not actively seek performance beyond the market; Active fund is a kind of fund that tries to achieve performance beyond the benchmark portfolio.

The above is about the difference between index funds and hybrid funds, I hope it will help.