anuragmukherjee28
Moderator
What are Hybrid Mutual Funds?
Mutual Fund investments can be broadly classified into three categories – Equity, Debt and Hybrid. A Hybrid Mutual Fund has a different combination of Equity and Debt financial instruments and are aimed at investors that prefer high-risk as well as low-risk assets. Hybrid Mutual Funds seek to find a ‘balance’ between growth and income by investing in both Equity and Debt with the aim of diversifying the portfolio.
Hybrid funds are typically classified into various different categories based on their equity exposure.
Mutual Fund investments can be broadly classified into three categories – Equity, Debt and Hybrid. A Hybrid Mutual Fund has a different combination of Equity and Debt financial instruments and are aimed at investors that prefer high-risk as well as low-risk assets. Hybrid Mutual Funds seek to find a ‘balance’ between growth and income by investing in both Equity and Debt with the aim of diversifying the portfolio.
Hybrid funds are typically classified into various different categories based on their equity exposure.
- Aggressive hybrid funds: These funds invest at least 65% of their assets in equities.
- Balanced hybrid funds: These funds invest between 35% and 65% of their assets in equities.
- Conservative hybrid funds: These funds invest less than 35% of their assets in equities.
- Reduced risk: Hybrid funds offer lower risk than pure equity funds.
- Potential for higher returns: Hybrid funds can still generate higher returns than pure debt funds, but with lower risk.
- Flexibility: Hybrid funds offer a variety of investment options than any other mutual funds.
