First, are hybrid funds risky?
Hybrid funds can invest in stocks, bonds and money markets at the same time, with strong investment flexibility. They will adopt aggressive and conservative investment strategies, that is, increase the proportion of stocks when the stock market rises and increase the proportion of bonds when the stock market falls.
According to the different investment ratios of stocks and bonds, hybrid funds can also be divided into various types, such as partial stocks, partial debts, allocation and balance. Among them, hybrid funds with partial stocks have the highest risk, while hybrid funds with partial debts are relatively conservative.
On the whole, the risk of hybrid funds is higher than that of money funds and bond funds, but lower than that of equity funds. It is a medium-risk investment product, suitable for investors who have certain risk tolerance and want to profit from the stock market.
Second, the advantages and disadvantages of hybrid funds
1, advantages of hybrid funds
The allocation of hybrid funds is more flexible. When the market is bullish, they can profit from stocks, and when the market is bad, they can also stabilize their expected returns through bond activities. Therefore, the expected return on investment of hybrid funds is considerable, although not as good as stock funds, but generally higher than money funds and bond funds.
2, the shortcomings of hybrid funds
The redemption time of hybrid funds is long, generally it takes T+3 days or T+4 days, and the liquidity of funds is relatively poor.
The investment allocation of hybrid funds is complex, and it is difficult to see the effect in the short term, and the redemption rate is high. Generally, you can avoid redemption fee if you hold it for more than two years, so hybrid funds are suitable for medium and long-term investment.
The above content about the high risk of hybrid funds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.