If you like a diversified investment vehicle that invests in several asset classes, Hybrid Funds is the right option for you. India’s First On-call Hybrid Funds Investment Advisory Portal Moneymindz observes that Hybrid Funds offer you an option to invest in many asset classes through a single fund.
Hybrid funds offer several levels of risk tolerance like conservative, moderate and aggressive. Hybrid Funds include a good mix of asset classes.
What is a Hybrid Fund?
A hybrid fund is an investment fund which diversifies its investments among two or more asset classes. They invest mainly in stocks and bonds. Hybrid Funds are also known as Asset Allocation Funds.
Hybrid Funds aim to create income in the short-run and accomplish capital appreciation in the long-run through a balanced portfolio. Your money is allocated in proportions based on your investment objective. If the majority of your assets is invested in equity, its called equity fund and vice versa.
Features of Hybrid Funds
- Provides income and wealth appreciation
Hybrid Funds not only provide you capital but also provide capital appreciation. This means you can earn now as well as save for the future.
- Diversifies your investments
Since diversifying reduces risk, your funds would be relatively safer than if it wasn’t diversified anywhere at all.
- Go for Low expense ratio
Expense Ratio is the fee charged by Hybrid Fund to manage your money. Lower expense ratio means higher take-home returns.
- Let it be on par with Financial Goals
No matter whichever investment you make, it must always be in sync with your financial goals. That’s why it’s crucial to have a financial goal attached to each investment you make.
Merits of Hybrid Funds
- Switch over from one combination to another
When the market is bullish you can witch over from one combination to another and so can you do when the market is bearish.
Perhaps the biggest advantage of most such funds is the diversity they offer. Any investor and Financial Expert will tell you why diversification is crucial. Diversification cuts down total risk.
- Asset allocation in a single structure
If you’re like me and are confused as to how much to allocate in each fund, etc. you should try Hybrid Funds as they offer you the benefits of asset allocation like a single package.
These are some details about Hybrid Funds. For more information visit www.moneymindz.com or give a missed call to 022-62116588