Investing is one of the strategies that may help you reach your financial objectives in life. Many people, however, continue to rely on conventional saving methods such as bank fixed deposits (FDs), traditional life insurance plans and government schemes. People frequently use the terms 'savings' and investment interchangeably. But they must recognize that there are significant differences between the two. Savings refers to the portion of your income that you set away, whereas investment refers to the portion of your savings that you actually put to work.
Having said that, things have changed in recent years, and with reduced returns given by various saving choices, investors are now shifting their investments to mutual funds. As first-time mutual fund investors, they are confronted with a profusion of alternatives, which frequently leaves them perplexed. In such cases, a hybrid fund is an excellent alternative for first-time mutual fund investors. You may now have a slew of questions about hybrid funds. In this article, we will go over all there is to know about hybrid funds, from what they are to the many types of hybrid funds and how to choose the best hybrid fund.
If we closely track the assets under management (AUM) trajectory of hybrid funds, we can find that it has increased from ₹3,41,445 crore to ₹4,79,918 crore in the last three fiscal years, representing a compounded annual growth rate (CAGR) of 12 per cent.
However, the picture changes if we look at its AUM as a percentage of the overall AUM of open-ended schemes.
As seen in the graph above, the contribution of hybrid funds' AUM to total AUM decreased sharply from June 2019 to December 2020. However, it has now begun to climb and is currently approaching the pre-pandemic levels. Further, examining the trend of specific types of hybrid funds would assist us in determining which is the most popular.
Denne historien er fra May 09. 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra May 09. 2022-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
