Fund Basics
How are equity, bond and hybrid funds distinguished?
Securities funds are classified by the proportion of the assets they mainly invest in. Generally, a fund that invests 60% or more of its total assets in stocks is called an equity fund, and one that invests 60% or more in bonds without holding any stocks is called a bond fund.
Hybrid funds are sometimes further divided into equity-oriented hybrid and bond-oriented hybrid funds, using a maximum stock allocation of 50% as the dividing line.
This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.