Hybrid funds are more suitable for investors who want higher returns but don't want to take too many risks. The risk of hybrid funds is lower than that of stocks. It is a fund that invests in both stocks and bonds, and there is no clear investment direction. So is the hybrid fund suitable for long-term holding?

Are hybrid funds suitable for long-term holding?

Hybrid fund is a kind of fund that invests in many asset classes such as stocks and bonds at the same time, and its risk-return level is between stock fund and bond fund. Generally speaking, hybrid funds are suitable for long-term holding, because long-term holding can better spread risks and enjoy long-term rising dividends in the capital market.

But holding hybrid funds for a long time does not necessarily lead to losses. This is because the performance of hybrid funds is related to the investment strategy, asset allocation and market conditions of fund managers, and the changes of these factors may lead to fluctuations in the performance of hybrid funds. If the fund manager's investment strategy is appropriate, the asset allocation is reasonable and the market situation is suitable, then the long-term holding of hybrid funds may bring better returns. In addition, long-term holding of hybrid funds also needs to pay attention to risk control. Investors should choose suitable hybrid funds according to their risk tolerance and investment objectives, and regularly review the investment portfolio and make adjustments according to the actual situation. If investors blindly follow the trend, or over-invest in a hybrid fund, they may face greater risks.