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.