Hybrid Mutual Funds Features/Performance:Hybrid mutual fund scheme has once again made a low return. According to the data of Association of Mutual Funds in India (Amfi), there has been an investment of Rs 1.45 lakh crore in these schemes (Hybrid Mutual Funds) in the financial year 2024. Earlier in the financial year 2023, net outflow was seen from these schemes. This means that it is clear that the attraction of investors towards these schemes is increasing. Despite changes in the rules regarding tax in debt schemes since the beginning of the financial year 2023-24, their attractiveness has increased. Actually, these are such schemes which are considered safe in times of market fluctuations. At the same time, the returns in these are also no weaker than any other. Through these the portfolio also gets diversified. Let us know why this scheme is considered safe.
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What is the specialty of hybrid mutual fund?
Hybrid mutual funds invest in more than one asset class (Hybrid Mutual Funds FeaturesAre. These include equity and debt assets. Many times these schemes also invest money in gold. That means you get an opportunity to invest money in equity, debt and gold in a single product. In this way their investments are quite diversified. Its advantage is that if equity returns deteriorate, the returns from debt or gold can balance the overall returns. Similarly, if the returns in debt or gold are weak, the returns in equity balance it. The number of people investing in these schemes is continuously increasing. In March 2024, the number of investors in this segment reached 1.35 crore, which was 1.21 crore a year before.
Scheme with best returns in 5 years
Quant Multi Asset Fund: 30% p.a.
Bank of India Mid & Small Cap Equity & Debt: 22% p.a.
ICICI Pru Equity & Debt Fund: 20.78% p.a.
Kotak Multi Asset Allocator FoF- Dynamic: 20.65% p.a.
ICICI Pru Multi Asset Fund: 20% p.a.
JM Aggressive Hybrid Fund: 19.32% p.a.
HDFC Balanced Advantage Fund: 18.65% p.a.
Baroda BNP Paribas Aggressive Hybrid Fund: 18% p.a.
ICICI Pru Retirement Hybrid Aggressive Fund 18% p.a.
Kotak Equity Hybrid Fund: 17.63% p.a.
(Source- Value Research)
Who should invest the money?
Focusing on asset allocation and diversification, these mutual fund schemes invest in various asset classes. If you fall in the category of investors who do not want to take market risk (Who Should Invest in Hybrid Mutual Funds)If so then hybrid mutual funds are a good option for you. While the risk is less in comparison to other categories, the returns are also better. However, it is not that only conservative investors should invest money in it. Aggressive investors i.e. investors who have the ability to take market risks can also invest money in these. If you are a new investor in mutual funds then this scheme can be better. During the last 3 to 5 years or 10 years, there are many such funds which have given returns of 15 to 18 percent or even more. Different categories of hybrid funds…
Aggressive Hybrid Fund
In this category of mutual funds, 65 to 80 percent of the investment is in equity. At the same time, 20 to 35 percent investment is made in debt or some part in other options.
Balanced Hybrid Fund
This mutual fund scheme invests a minimum of 40 percent and a maximum of 60 percent in both equity and debt asset classes. Investors who want to grow their wealth in the long term can opt for balanced hybrid funds.
Conservative Hybrid Fund
Conservative hybrid funds invest 10% to 25% of total assets in equity and equity related options, while the remaining 75% to 90% are allocated to debt options.
Dynamic Allocation or Balanced Advantage Fund
This scheme of mutual fund can invest 100 percent of the total investment in equity or debt. It manages its investments in a dynamic manner.
Multi Asset Allocation Fund
In this category of mutual funds, investment can be made in all three asset classes – equity, debt and gold. In this, 65 percent investment is made in equity, 20 to 25 percent investment is made in debt and 10 to 15 percent investment is made in gold.
Arbitrage Funds
They have to invest at least 65 percent of their total assets in equity or equity related instruments.
Equity Savings Funds
This scheme of mutual fund invests in equity, debt and arbitrage. At least 65 percent of the total assets will have to be invested in shares. Similarly, at least 10 percent investment has to be made in debt.
(Note: Here we have given information about hybrid mutual funds. This is not an investment advice. Considering the market risk, take expert advice before investing.)
