Hybrid Index

A "Hybrid Index" refers to a composite financial index that combines the features of two or more individual indices. By blending various asset classes, geographical regions, or market sectors, a hybrid index aims to provide a more diversified and balanced representation of the market or a specific investment theme.

This amalgamation can offer investors a unique risk-return profile, potentially capturing the strengths of its constituent indices while mitigating some of their individual vulnerabilities.

For investors, the allure of a hybrid index lies in its potential to offer enhanced diversification. Traditional indices might focus on a specific market segment, asset class, or region, each with its inherent risks and rewards.