Hybrid Mutual Funds Advisor in Mumbai, India.
A hybrid fund is an investment fund that is characterized by the diversification of two or more asset classes. These funds typically invest in the mix of stocks and bonds. They are also known as asset allocation funds.
Hybrid funds offer the investors a diversified portfolio. The term hybrid indicates that the fund strategy includes investment in the multiple asset classes. In general, it means that the fund uses an alternative mixed management approach.
Hybrid funds are commonly known as the asset allocation funds. In the investment market, asset allocation funds are used for many purposes. These funds offer investors an option to invest in multiple asset classes through a single fund.
Hybrid funds evolved from the implementation of the modern portfolio theory in fund management. These funds offer varying levels of the risk tolerance ranging from conservative to moderate and aggressive.
Hybrid funds aim to achieve wealth appreciation in the long-run and generate income in short-run via a balanced portfolio. Our advisors allocate your money in varying proportions in equity and debt based on investment objective of the fund. Hybrid funds can be the equity-oriented or debt-oriented.
Hybrid funds invests 65% or more of the fund’s assets in equity and rest in debt and money market instruments, it’s called an equity-oriented fund. An asset allocation of 60% or more in debt and rest in equity is known as the debt-oriented fund. For the sake of liquidity, some part of the fund would be invested in cash and cash equivalents.