Hybrid funds usually belong to medium-risk varieties in securities investment funds, and their expected risks and returns are usually higher than bond funds and money market funds, but lower than stock funds. At the same time, hybrid funds take stocks, bonds, etc. as investment objects, in order to achieve a balance between income and risk by investing in different asset classes. The expected risk of hybrid funds is lower than that of equity funds and the expected return is higher than that of bond funds. It provides investors with a tool to diversify their investments among different asset classes, which is more suitable for more conservative investors.
An index fund is a fund product that takes a specific index (such as the Shanghai and Shenzhen 300 Index and the S&P 500 Index) as the underlying index, takes the constituent securities of the index as the investment object, builds a portfolio by purchasing all or part of the constituent securities of the index, and tracks the performance of the underlying index. Index funds generally aim at closely tracking the underlying index and minimizing the tracking error, aiming to make the portfolio change trend close to the underlying index, so as to obtain roughly the same rate of return as the underlying index.