last few months The period of ups and downs in the stock market continues. A big rise in the market one day and a fall the next day has forced investors to change their strategy. Due to this, investors are now turning towards hybrid funds. An investment of Rs 4,129 crore has come in this scheme in November. The asset under management of this scheme i.e. the value of investors’ investment has increased by 45 percent in one year.
What is hybrid fund?
Hybrid fund is also a scheme of mutual fund. In this, investors’ money is invested in equity and debt. The objective of hybrid funds is to strike a balance between risk and return. Hybrid funds help investors diversify their portfolio, thereby reducing market risk. In hybrid funds, if the stock market falls, gold and debt provide positive returns. Therefore, the interest of investors has increased in funds of this segment.
investment increased rapidly
According to the Association of Mutual Funds in India (Amfi), the AUM of hybrid funds has increased from Rs 6.02 lakh crore to Rs 8.77 lakh crore in a year. Hybrid funds are the fastest growing category among mutual funds as investors seek protection in volatile market conditions. Hybrid funds are becoming a favorite as they invest in both equity and debt. This provides less risk and good returns for investors.
23 lakh new accounts opened
23 lakh new accounts have been opened in hybrid funds in October this year. Keeping in view the interest of investors, mutual funds are focusing on hybrid funds. Most of the fund houses are offering hybrid of debt and equity. Nippon India Multi Asset Fund stands out. This fund follows a fixed investment across equity, debt and commodity. It also invests in international equities. Nippon India Equity Hybrid Fund gave 23.02 per cent return and Nippon Balanced Advantage Fund gave 19.39 per cent return in one year. Its Balanced Advantage Fund has given a profit of 19.39 percent.
Got better returns in these funds
Similarly, in one year, HDFC Multi Asset has given 18.9 percent return, Kotak Multi Asset has given 23.5 percent return and Nippon Multi Asset has given 25.93 percent return. In volatile markets, hybrid funds provide money safety and growth, which are two important needs of an investor. Since these funds keep pace with market changes, they help investors avoid the worry of market timing.
