A Review of Domestic-Hybrid Mutual Funds

Domestic-hybrid mutual funds vary with respect to investment objective, active or index management, proportions of stocks and bonds, and the mix of stock cap size/investment style and, therefore, risk.There are several types of domestic-hybrid mutual funds that apply various stock/bond allocations in efforts to provide full diversification in one portfolio. These “one-stop shopping” funds were initially designed to simplify decision making for long-term investors and pension plan participants. This design was considered appropriate if the benefits of risk-moderating bond allocations were to be fully realized.Later, the more established and successful of these funds were deemed appropriate as core elements of portfolios. Domestic-hybrid mutual funds come in two basic forms: balanced funds and asset allocation funds. Each form focuses on a different approach to stock/bond allocation, and their histories precede their overall label as domestic-hybrid funds