Cope with volatility, benefit from rate cuts

Volatility in the capital markets continues to pose a challenge to equity investors.

- SARBAJEET K SEN

At the same time, the possibility of interest rate cuts, following a prolonged wait, is growing. In such an environment, taking a balanced approach to investment through aggressive hybrid schemes of mutual funds may offer a prudent path forward.

"Aggressive hybrid funds are well-suited for the current market environment as equity markets are volatile due to global economic uncertainties, inflationary pressures, and shifting interest rate expectations. Their balanced asset allocation allows these funds to navigate such challenges more effectively," says Nirav R Karkera, head of research, Fisdom.

Hybrid funds are all-season funds. "They are best for new investors in equity markets as they help build confidence in the asset class," says Fatema Pacha, senior equity fund manager, Mahindra Manulife Mutual Fund.

Cushion against volatility