It is vital for investors to possess an understanding of the concept of investing in hybrid funds. Simply put, hybrid funds are mutual fund schemes that invest in multiple asset classes with the goal of diversifying a portfolio and minimizing risks.
By investing in a mix of different assets, hybrid funds aim to offer a balance between growth and income to investors. In many ways, hybrid funds are considered a compromise between debt funds and equity funds, as they provide a mix of both.
These funds generally offer relatively lower risks compared to pure equity funds, but higher risks compared to debt funds. They can be a good option for investors who are seeking to balance risks and returns. Hybrid funds can also be a good option for new investors or those who are hesitant to invest directly in the equity market.
The debt component of hybrid funds provides stability to the portfolio and reduces the impact of market volatility. This allows investors to potentially benefit from equity market returns while also reducing their overall risks.
Hybrid funds come in different varieties based on their asset allocation, with some having a greater allocation towards equities, and others towards fixed-income assets.
It is important for investors to consider their risk tolerance, investment goals, and time horizon when choosing a hybrid fund that is appropriate for them.
An investor with a higher risk tolerance may be more suited to a hybrid fund with a higher allocation to equities, while an investor with a lower risk tolerance may prefer a hybrid fund with a higher allocation to fixed-income assets.
TYPES OF HYBRID FUNDS
Aggressive Hybrid Fund
Bu hikaye Beyond Market dergisinin February 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Beyond Market dergisinin February 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
PRUDENT PRACTICES
Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks
RETAIN ROULETTE
Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst
UNRAVELED THREADS
Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains
PASSING THE BATON
Succession planning helps ensure uninterrupted leadership
RISKY BUSINESS?
SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes
INFLATION-PROOF YOUR CHILD'S FUTURE
Inflation might be stealing your child's future, but children's mutual funds can be their superhero
EMBRACE UNCERTAINTY, SAYS MARKS
Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”
IMPORTANT JARGON
70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY
AN ASCENT T'O NEW HEIGHTS
The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates
