Categories: Mutual Funds

What is an Aggressive Hybrid Fund?| Who should Ideally Invest in them?

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TRANSCRIPT:

Hi everyone my name is Karan Batra and I’m from Fisdom .
Today we are going to talk about Aggressive Hybrid Fund.

So what are these funds?
These are open-ended schemes and basis SEBI’s mandate they are supposed to invest in anywhere from 65-80% in equity or equity-related instruments and the remaining 25-30% in debt instruments.
Because these schemes invest in for 65% or more in equity funds these are categorized as equity-oriented schemes.

So who should invest in Aggressive Hybrid Funds?
so its best suited for customers who are maybe first-time investors and want to participate in the equity market yet want a certain amount of cushion.
So an aggressive hybrid fund are best suited for such customers because the equity component will give you the extra return yet the debt component will give you a certain amount of cushion.
Secondly, you have to also make sure that the investor should have a horizon of 5 years or more to start investing in this category of funds.

So why should one invest in Aggressive Hybrid funds schemes?
Now if an investor wants to participate in the equity market rally he gets an opportunity to do so as these schemes invest from 65% and upwards into the equity market. Thus giving the investor the opportunity to get great returns. Yet also giving a certain amount of cushion by adding a debt component of anywhere from 20 to 25% so the name aptly goes these are aggressive hybrid/ balance schemes giving the best of both worlds.

So now that we know that aggressive hybrid funds are a great investment option. How do we go about investing in them?
Open your Fisdom app go to the Do it yourself section. You’ll get 3 options Equity, Debt, and Hybrid.

Click on Hybrid click on the first option on Hybrid on the first category you will get all the different schemes basis the returns mentioned there you can select whichever one you want and go ahead and make your payment and start your investment.

Akshatha Sajumon

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