Hybrid funds can be a panacea for market volatility but there's a catch

Investors should, however, be prepared for the fact that lower equity exposure will mean lower returns than from a pure equity fund

Sanjay Kumar Singh 

With the equity markets turning volatile, fund houses are now pushing hybrid funds as a panacea for market volatility. Before buying them, investors need to understand their pros and cons, and which of the seven categories is suited for them. Aggressive hybrid funds invest 65 per cent or more in equities.

These funds give you diversified exposure to both equities and debt. The fund manager takes care of asset allocation and rebalancing, which reduces the investor's risk. These funds enjoy the tax treatment of equity funds. Investors, however, need to remember that aggressive ...

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First Published: Tue, October 09 2018. 08:40 IST