What Is a Commingled Fund?

A hybrid fund is a fund that invests in instruments such as stocks, bonds, and money markets at the same time, without a clear investment direction. Its risks are lower than equity funds, and expected returns are higher than bond funds. It provides investors with a tool for diversifying investment between different assets, which is more suitable for more conservative investors.

Mixed fund

Mixed funds in English: hybrid funds

A hybrid fund is a form of fund that aggregates investor funds in the form of partnership law. For example, a bank or insurance company organizes funds and collects fees from them. Typical partners include trust or retirement accounts. They have much larger asset portfolios than individual investors, but if managed independently, they are still too small.

In form, a hybrid fund is similar to an open fund, but instead of using fund shares as an investment vehicle, it provides a fund unit that can be bought and sold at the net asset price. Banks or insurance companies offer a large number of different mixed funds for trust or retirement account options. E.g,

Mixed funds are subdivided according to their asset investment ratios and their investment strategies

Investors should pay attention to the following four points when choosing a hybrid fund

First Fund companies and fund performance are selected first before selecting funds

As of the end of August 2019, the latest data from the China Fund Industry Association showed that the total assets of China's public funds were 13.84 trillion yuan. It is worth noting that the size of various types of funds such as hybrid funds expanded in August. ^[1]