Published: 22nd Feb, 2024
Context
Hybrid mutual fund schemes have been gaining popularity among investors, attracting Rs 20,634 crore in January, marking a 37 per cent surge from the previous month, largely due to their appeal as an alternative investment option post-change in taxation laws for debt funds.
What are Hybrid Funds?
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Different types of hybrid funds
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- Hybrid funds are a combination of equity and debt features into a single fund.
- Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as
- A hybrid fund tries to give the investor the best of both worlds - it is neither too risky, nor it is too low on returns
Why they are an attractive option?
- Hybrid funds appeal more to investors with a moderate or low-risk profile.
- These funds are good investment options as they reduce the volatility associated when participating in equity markets while simultaneously providing stability in the fixed-income market.
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