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    What are hybrid mutual funds?

    Synopsis

    It is a type of mutual fund investing in more than one asset class, usually in a combination of equity and debt.

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    Hybrid mutual funds offer varying levels of risk tolerance ranging from conservative to moderate and aggressive.
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    1. Hybrid mutual funds invest in more than one asset class— typically a combination of equity and debt assets. Sometimes they also include gold.

    2. The key philosophies behind hybrid funds are asset allocation and diversification.

    3. They aim to generate capital appreciation through equity and regular return through the debt portion of the portfolio.

    4. Hybrid funds offer varying levels of risk tolerance ranging from conservative to moderate and aggressive.

    5. They serve as a good entry point for new investors in the equity market,and also can be used for saving for individual goals.

    (The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
    (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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    1 Comment on this Story

    AMISHA TANKSALE358 days ago
    As it is a combination of both equity and well as debt thus we can balance risk of loss from it.
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