CURRENT AFFAIRS FOR UPSC IAS

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?

• 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.