hybrid funds are likely to show their mettle in the coming year. Hybrid mutual funds or schemes that invest mostly in equity and debt fare better in an uncertain or volatile environment. Mutual fund experts believe that markets are likely to be cautious and investors should also proceed with caution.
Aggressive hybrid funds are one of the popular hybrid mutual fund categories. These schemes are mandated to invest in a mix of equity (or stocks) and debt. As per Sebi norms, these schemes must invest 65-80% in stocks, and 20-35% in debt. This mixed portfolio helps to deal with the market volatility better. When the equity market is in turmoil, the debt part of the portfolio softens the blow. This helps new investors to continue with their investments without worrying too much about volatility.
If you are bothered about the uncertainties and volatility in the market, you can consider investing in aggressive hybrid mutual funds. Mutual fund advisors typically recommend aggressive hybrid fund schemes to ‘conservative’ equity investors to create wealth to achieve their long-term financial goals.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
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A 'conservative equity investor' is not the same as a conservative investor. A conservative investor doesn’t want to take risks at all. These investors typically park their money in bank deposits, bonds, etc which give them predictable returns. A conservative equity investor is ready to take risk, but he or she doesn't want