Hybrid fund refers to a fund that invests in stocks, bonds and money markets at the same time, has no clear investment direction, and does not meet the classification standards of stock funds and bond funds. Hybrid funds are generally less risky than equity funds and have higher expected returns than bond funds, which are more suitable for more conservative investors. Hybrid funds are relatively more flexible than stock or bond funds. For example, when the stock market is good, they can increase the position of the underlying stock and earn more income.

According to the different investment ratios and investment strategies of stocks and bonds, hybrid funds can be divided into partial stock hybrid funds, partial debt hybrid funds and flexible allocation funds. The proportion of assets invested by partial stock hybrid funds in stocks is above 60%, and the proportion of assets invested by partial debt hybrid funds in bonds is above 60%. Flexible allocation funds are the most flexible types of hybrid funds.

Risk classification: hybrid partial stock fund > allocation fund > stock-debt balance fund > partial stock fund. Investors can choose the appropriate fund according to their risk tolerance.

Equity funds are funds that mainly invest in stocks. Equity funds can spread risks to some extent through expert management and portfolio diversification, but the risk of equity funds is still the highest among all fund products, which is suitable for investors with high risk tolerance.