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Funds that invest in more than one asset class may be called hybrid funds, which tend to invest in a mix of stocks and bonds. They may also be known as asset allocation funds.

The term hybrid fund refers to funds that invest in multiple asset classes through a single fund. These funds offer investors the option to invest in a number of asset classes through one fund.

Hybrid funds are mutual funds or exchange-traded funds that invest in a variety of assets and classes to produce a diversified portfolio.

A common example of a hybrid fund is a balanced fund, which holds 60% stocks and 40% bonds.