Equity Hybrid Mutual Fund

  Many individuals strive to achieve financial success but very less hold the potential to stay committed to their investments over the long run. That's because in order to achieve wealth over the long term one needs to invest at an early stage in their life. The early you start investing the better it is because that way you have more years in hand to build wealth. Individuals have financial goals which they are really keen or willing to achieve, but most of them do not have enough patience to achieve these goals. Lack of saving and investing is one of the primary reasons why investors are unable to achieve their lives financial goals. In order to create wealth, one needs to save more than spend.

Indian investors have plenty of investment schemes to choose from. There are conservative as well as aggressive investment options available and investors should invest depending on their risk appetite. A risk appetite can determine whether an investor can invest in aggressive schemes or stick to conservative investment avenues.

Mutual funds are a pool of professionally managed funds that invest across multiple asset classes. Mutual funds carry an investment portfolio that is diversified and also offers active risk management. Market regulator SEBI (Securities and Exchange Board of India) describes mutual funds as, "a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in the offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced."

Several investors are unaware of the fact that there are many Schemes offered by mutual funds other than equity Schemes for investment. SEBI has further categorized mutual fund Schemes for investors to be able to make an informed investment decision. This categorization has been done based on multiple attributes like its investment strategy, asset allocation, risk profile, investment objective etc. Apart from equity funds hybrid funds too are slowly making their way in the portfolio of several Indian investors. They are called hybrid funds because of the unique investment strategy that these funds follow. An equity fund invests the majority of its assets in equity related instruments. Debt funds aim at generating capital appreciation by investing in fixed income securities. And hybrid funds on the other hand invest in both equity and debt related instruments.

Aggressive hybrid funds are those mutual funds that predominantly invest in equity related instruments. The rest is invested in fixed income securities and money market instruments.

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