Which is better, pure debt fund or mixed debt fund?
There is no better way to say that bond funds and hybrid funds can only say that the suitable investors are different. Generally speaking, investors can choose funds according to their risk tolerance, investors with high risk tolerance can choose hybrid funds, and investors with low risk tolerance can choose bond funds.
What's the difference between bond funds and hybrid funds?
1. Hybrid funds mainly invest in stocks, bonds and money market instruments, while bond funds specialize in bonds, mainly treasury bonds, financial bonds and corporate bonds;
2. Hybrid funds can make investors diversify their investments through expert management and portfolio diversification, while bond funds cannot diversify their investments because 80% of their assets are invested in bonds.
3. Hybrid funds adopt aggressive and conservative investment strategies, while bond funds adopt conservative investment strategies;
4. Hybrid funds have a high risk level and are suitable for investors with strong anti-risk ability to invest. Bond funds have a low risk level and are suitable for investors with weak anti-risk ability;
5. Hybrid funds have high risks and high returns. Bond funds have low risks and low returns.
Understand the difference between tiered funds and ordinary funds in one article!