Hybrid Fund


DEFINITION of 'Hybrid Fund'

A category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed. Morningstar separates hybrid funds into domestic hybrid and international hybrid categories.


In the hybrid category, balanced funds tend to stick to a relatively fixed allocation of stocks and bonds. Actively managed asset allocation funds tend to have portfolios with a mix of stocks and bonds that responds to market conditions as perceived by the fund manager. Passively managed asset allocation, life-cycle and target-date funds generally have a stock-bond mix that changes over a lifetime, moving progressively from aggressive to more conservative structures.

  1. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
  2. Exchange Fund

    A stock fund that allows an investor to exchange his or her large ...
  3. Asset Allocation Fund

    A mutual fund that provides investors with a portfolio of a fixed ...
  4. Life-Cycle Fund

    A special category of balanced, or asset-allocation, mutual fund ...
  5. Balanced Fund

    A fund that combines a stock component, a bond component and, ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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