Top Mutual Funds: Mutual funds are a popular investment choice, offering a diverse range of options to suit various financial goals and risk appetites. From equity to debt and balanced funds, they provide opportunities for wealth creation and stability. Choosing the right mutual fund can help you achieve long-term financial success while managing risks effectively.
Hybrid mutual funds have become an important option in the world of investment, especially for those investors who want balanced returns and controlled risk. This fund is made up of a mix of equity and debt instruments, which gives investors the benefits of both asset classes.
Hybrid mutual funds are mainly of two types – aggressive and balanced. In aggressive hybrid funds, 65-80% of the investment is made in equity, while the rest goes to debt instruments. In balanced funds, the ratio of equity and debt is more balanced, which keeps the risk low.
This fund is ideal for investors who want to protect themselves from market volatility but also want to take advantage of equity. When the market is bullish, the equity portfolio gives good returns, while debt instruments act as a protective shield during the downturn.
The best way for investors is to invest in hybrid mutual funds through SIP (Systematic Investment Plan). Investing through monthly SIP reduces the impact of market volatility. Also, if investors do a SIP top-up of 8-10% every year, this investment can create a big fund in the long run.
There are many great funds available in this category, including:
ICICI Prudential Equity and Debt Fund
HDFC Hybrid Equity Fund
SBI Equity Hybrid Fund Direct Plan Growth
For example, if an investor invests Rs 10,000 per month in this fund, then in 25 years his investment can go up to Rs 3 crore. Hybrid MFs are suitable for investors who want to take advantage of both equity and debt. This investment not only provides good returns but also gives protection during times of volatility. Therefore, as a savvy investor you must include at least one aggressive hybrid fund in your portfolio.
Also Read: Top Tax-Saving FDs Helping You Reduce Taxes and Earn Returns
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