indian stock market There has been a lot of upheaval in the last two months. Small investors are scared of this. Many have also suffered heavy losses. If you want to remain tension free amidst this market volatility, then you can choose the path of investing in hybrid mutual funds. Due to the rapidly increasing interest of investors, the asset undermanagement (AUM) of hybrid funds reached a record level of Rs 8.61 lakh crore in August this year. Let us tell you that hybrid funds invest in two or more asset classes, which usually mainly include equity and debt but also commodities like gold and silver. These funds work on a strategy of diversification and asset allocation to balance risk and returns. This gives investors excellent returns on their investments even in volatile markets.
This is why investors remain safe
When markets are high, equity in the fund gives good returns, while debt provides stability. These funds help in achieving better returns in the long run through equity and stability and regular income through debt. Hybrid funds offer several benefits. These also include wealth creation as equity increases wealth. Investors also benefit from lower volatility due to the debt portion of the fund. Moreover, hybrid funds give diversification, which is an important advantage as these funds diversify not only across different asset classes but also across sub classes such as large cap, mid cap and small cap stocks. Hybrid funds also offer active rebalancing, allowing fund managers to adjust portfolios in response to evolving market conditions to optimize returns for investors. Each fund house offers a mix of hybrid funds.
That’s why it’s a better option
Hybrid mutual funds offer a unique advantage by allowing investors to access multiple asset allocations through a single fund, eliminating the need for investments in multiple different instruments. The leader among hybrid mutual funds is Nippon India Mutual Fund which offers several hybrid funds like Nippon India Multi Asset Allocation Fund, Nippon India Asset Allocation FOF, Nippon India Equity Savings Fund, Nippon India Balanced Advantage Fund and Nippon India Equity Hybrid Fund. Some of these funds have given attractive returns in the last one year. Other hybrid funds include Quant Multi Asset Fund, JM Aggressive Hybrid Fund, HDFC Balanced Advantage Fund, ICICI Prudential Multi Asset Fund, UTI Multi Asset Allocation Fund, etc.
