Fund Basics

How are equity, bond and hybrid funds distinguished?

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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.

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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.