Compared with equity funds, hybrid funds have lower expected annualized returns and less risks. Compared with bond funds, the expected annualized expected return is higher and the risk is higher. It provides investors with a tool to diversify their investments among different assets, which is more suitable for more conservative investors.
Characteristics of hybrid funds
1, collective financial management, professional management
The fund collects the funds of many investors and entrusts the fund managers to invest together, showing a feature of collective financial management. By pooling the funds of many investors, many a mickle makes a mickle, which is conducive to giving full play to the scale advantage of the fund and reducing the investment cost. The fund is managed and operated by the fund manager. Fund managers generally have a large number of professional investment and research personnel and a strong information network, which can better track and analyze the securities market comprehensively. Give funds to fund managers for management, so that small and medium investors can also enjoy professional investment management services.
2, portfolio investment, risk diversification
In order to reduce investment risks, China's Securities Investment Fund Law stipulates that funds must be invested and operated in the form of portfolio investment, thus making "portfolio investment and risk diversification" a major feature of funds. The scientific nature of "portfolio investment and risk diversification" has been proved by modern investment science. Due to the small amount of funds, small and medium-sized investors generally cannot diversify their investment risks by buying different stocks. Funds generally buy dozens or even hundreds of stocks. Investors buying funds are equivalent to buying a basket of stocks with very little money. The losses caused by the decline of some stocks can be made up by the rising profits of other stocks. Therefore, you can fully enjoy the benefits of portfolio investment and risk diversification.
3. Enjoy the benefits and take risks.
Fund investors are the owners of funds, and fund investors * * * take risks * * * and enjoy expected annualized expected returns. The expected annualized expected income of the fund investment after deducting the expenses borne by the fund all belongs to the fund investors and is distributed according to the proportion of the fund shares held by each investor. Fund custodians and fund managers who provide services for the fund can only collect certain custody fees and management fees according to regulations, and do not participate in the distribution of the expected annualized expected income of the fund.
4. Strict supervision and transparent information.
In order to effectively protect the interests of investors and enhance their confidence in fund investment, the China Securities Regulatory Commission has implemented strict supervision over the fund industry, severely cracked down on all kinds of behaviors that harm the interests of investors, and forced funds to make full information disclosure. In this case, strict supervision and information transparency have become the remarkable characteristics of the fund.
5, independent custody, to ensure safety
The fund manager is responsible for the investment operation of the fund and does not handle the custody of the fund property. The custody of the fund property is the responsibility of the fund custodian independent of the fund manager. This kind of checks and balances mechanism of mutual restriction and mutual supervision provides an important guarantee for the interests of investors.