<P> Hybrid funds invest in both bonds and stocks or in convertible securities . Balanced funds, asset allocation funds, target date or target risk funds, and lifecycle or lifestyle funds are all types of hybrid funds . </P> <P> Hybrid funds may be structured as funds of funds, meaning that they invest by buying shares in other mutual funds that invest in securities . Many funds of funds invest in affiliated funds (meaning mutual funds managed by the same fund sponsor), although some invest in unaffiliated funds (i.e., managed by other fund sponsors) or some combination of the two . </P> <P> In the United States at the end of 2016, assets in hybrid funds were $1.4 trillion, representing 7% of the industry . </P> <P> Funds may invest in commodities or other investments . </P>

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