With the increasing investment direction and mode in the market, fund investment has become the first choice for many investors. In the process of investment, many investors have raised such questions. What is the difference between hybrid funds and stock funds? How should we choose the investment methods of these two funds in order to obtain higher expected returns? Let's take a look at it together.

1. The risk levels are different

The risk-taking performance of the two companies is equity funds >; Hybrid fund;

Equity fund is a fund with high expected annualized expected return and high risk, while hybrid fund has moderate risk and expected annualized expected return due to diversified investment.

2. Different investment directions

A hybrid fund refers to a fund that invests in instruments such as stocks, bonds and money markets at the same time without a clear investment direction; Stock funds are funds that invest in the stock market, and generally have obvious investment directions.

3. Different investment strategies

Hybrid funds provide investors with a tool to diversify their investments among different assets, which is more suitable for more balanced investors; Generally, stock funds take value-added as their main purpose, so they are radical investment methods.

4. Different performance of expected return

Theoretically, the expected annualized expected return of stock base is higher than that of mixed base, because the stock base adopts radical strategy and the mixed base is both radical and conservative, so the relative return of mixed base may be lower than that of stock.

However, if the market drops sharply, the mixed base can transfer 7% of the shares to 1%, and it is already the limit to reduce the position of the stock base to 8%. In this case, the annualized expected return of the mixed base is higher.

That's all about the difference between hybrid funds and stock funds, and I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.