If you want a stress-free return on investment, opt for a hybrid fund, know the benefits of investing in it.

Hybrid Fund - India TV Paisa
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the whole world With this, the period of upheaval has started again in the Indian stock market. Due to the Russia-Ukraine war, rising inflation in the world has spoiled the mood of the market. Due to which there is a fall in the market. Along with the stock market, investors in mutual funds are losing out due to falling markets. In such a situation, if you are a mutual fund investor, you can opt for a hybrid fund. We are telling you how by investing in hybrid funds you can not only protect yourself from market fluctuations but also get the best returns on your investment.

What is a hybrid fund?

A hybrid fund is a mutual fund scheme that invests in both equity and debt. Many hybrid funds also invest in gold and silver. Within equity also there is freedom to invest in large, mid and small caps. So investors get a balance return. For example, gold prices rise when markets fall and gold prices fall when markets rise. In this way the investors are not at a loss. Financial experts believe that if the investor wants to take less risk in the market, a hybrid fund is a better option. We tell you that there are basically six types of hybrid funds.

How have hybrid funds performed?

If we look at the performance of hybrid funds available in the market, funds like Nippon India Multi Asset Fund and Nippon India Equity Hybrid have given returns of 16.43% and 18.74% in the last one year. While HDFC Multi Asset Fund and Tata Multi Asset Fund have returned 13.98% and 15.25% respectively during the same period. Among Balanced Advantage funds, which are in the hybrid category, ICICI Prudential and Sundaram have given annualized returns of 10.94% and 11.06%, while Nippon India Balanced Advantage Fund has given a higher return of 11.29%.

Why investing in hybrid funds is beneficial?

Financial experts say that India is the strongest and fastest growing economy in the world. Due to this, foreign investors are investing heavily in the Indian market. A hybrid fund’s mix of both equity and debt makes it very attractive. Hence, a combination of equity and debt is a great option for investors who are either risk averse or who want to balance or diversify their portfolio.

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