What does a mixed fund mean? A hybrid fund refers to a fund that invests in instruments such as stocks, bonds and money markets at the same time without a clear investment direction.
Hybrid funds are less risky than equity funds and have higher expected returns than bond funds . Hybrid funds provide investors with a tool to diversify between different asset classes and are more suitable for investors with moderate or conservative levels of risk.
According to the different proportions of the asset allocation of mixed funds, the mixed funds are divided into equity-oriented funds, debt-oriented funds, equity-debt-balanced funds, and flexible allocation funds.
The allocation ratio of stocks in partial stock funds is generally 50%~70%, and the allocation ratio of bonds is generally 20%~40%.
Debt-oriented funds are the opposite of equity-oriented funds, with a higher proportion of bonds and a lower proportion of stocks.
The allocation ratio of stocks and bonds in a stock-bond balanced fund is relatively balanced, and the proportion of stocks and bonds is generally between 40% and 60%.
Flexible allocation funds can be adjusted at any time according to market changes. Sometimes the proportion of stocks is higher, sometimes the proportion of bonds is higher, and sometimes more money market instruments can be invested.