Is it good to invest in aggressive hybrid fund? (2024)

Is it good to invest in aggressive hybrid fund?

Aggressive hybrid funds are taxed as equity funds, making them advantageous for investors in higher tax brackets. Financial planners believe firsttime equity investors moving from bank deposits to mutual funds can consider an aggressive hybrid fund category, which invests in a mix of equity and debt instruments.

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Should I invest in aggressive hybrid fund?

Aggressive hybrid schemes are recommended to conservative equity investors looking to create wealth while minimising volatility. These schemes have a mixed portfolio of equity and debt, allowing for better risk management. The fund manager regularly books profits to maintain asset allocation and enhance returns.

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Are aggressive growth funds a good investment?

Aggressive growth funds are identified in the market as offering above average returns for investors willing to take some additional investment risk. They are expected to outperform standard growth funds by investing more heavily in companies they identify with aggressive growth prospects.

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What is the advantage of hybrid fund?

The greatest advantage of a hybrid mutual fund is that it permits investors to balance risk and return. The equity portion will earn higher returns in comparison to the debt part that is low and has lower risk. Investors can also choose the mix of equity and debt that is suited to their needs.

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What are the risks of hybrid mutual funds?

Disadvantages:
  • Hybrid funds are less volatile than pure equity funds, which means they may not deliver high returns during market rallies.
  • Since hybrid funds invest in equity and debt securities, they have higher expense ratios than pure debt funds.
  • The tax treatment of hybrid funds depends on their asset allocation.

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Are aggressive hybrid funds good for long term investment?

Aggressive hybrid funds are suitable for investors who want to generate wealth in the long term but also reduce their risk exposure. These funds are also ideal for beginners who are new to investments and want exposure to equity.

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Are aggressive hybrid funds safe?

The advantage is that it is largely as safe as a debt fund but the small portion enhances returns to more than what debt funds offer.

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What is the average return for an aggressive portfolio?

Historical performance
CategoryActive-Based Aggressive PortfolioBenchmark
1 year17.84%18.99%
3 years6.07%5.22%
5 years10.67%10.60%
10 years7.69%7.89%
2 more rows

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Should I invest in an aggressive portfolio?

Financial professionals usually don't recommend aggressive investing for anything but a small portion of a nest egg. And regardless of an investor's age, their risk tolerance will determine if they become an aggressive investor.

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At what age should you invest aggressively?

Key Takeaways. If you're in your 30s, you have 30 or more years to profit from the investment markets before you are likely to retire. If you can handle the volatility of stock prices, now's the time to invest aggressively.

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What are the benefits of aggressive hybrid funds?

The biggest advantage of aggressive hybrid funds is that you get allocation to debt and they are taxed as equity funds. For schemes held for more than a year, long-term capital gains of more than ₹1 lakh are taxed at 10%, while for schemes held for less than a year, short-term capital gains tax of 15% is applicable.

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Should I invest in hybrid funds?

Overall, conservative hybrid mutual funds are a good option for investors who have a low-risk appetite and are looking for a balance of capital preservation and growth potential.

Is it good to invest in aggressive hybrid fund? (2024)
What are the cons of hybrid funds?

Disadvantages of Investing in Hybrid Mutual Funds
  • Market Risks - Since the equity market is highly volatile and hybrid funds have exposure in equity, they carry market risks. ...
  • Credit Risk - If a hybrid fund chooses debt instruments with low credit ratings, the chances of default will be high.
Jul 18, 2023

Are hybrid funds better than equity funds?

There are three broad classifications of Mutual Funds- Equity, Debt and Hybrid Funds. Typically Equity Funds are good for investors with a high risk appetite, Debt Fund is for the investors who wish to earn higher returns by taking moderate risk and Hybrid Funds are for investors who want the “best of both worlds”.

What is aggressive hybrid fund?

What is Aggressive Hybrid Mutual Fund. Aggressive Hybrid Funds are balanced funds invest primarily in stocks with some allocation to FD-like instruments. Spreading out of investments means these funds are less risky than pure equity funds with almost similar returns in the long run.

Which is better hybrid fund or balanced advantage fund?

Balanced funds have a higher return rate as they aim at long-term growth. Balanced advantage funds may generate fewer returns on a long-term basis as they provide gains adjusted for risk. Balanced funds provide long-term benefits for investors.

Which funds to buy in 2024?

Top 10 most-popular investment funds in January 2024
RankFundIA sector
1L&G Global Technology IndexTechnology and Technology Innovations
2Vanguard LifeStrategy 80% EquityMixed investment 40%-85% shares
3Fundsmith EquityGlobal
4Jupiter India I AccIndia/Indian Subcontinent
6 more rows
Feb 1, 2024

Who should invest in hybrid mutual funds?

Investors looking for asset allocation: These investors want a portfolio with a certain asset allocation but have not time or expertise to track the markets and manage their asset allocation. Hybrid funds are an excellent option for ready-made investment portfolios.

What is the best long term investment to make?

The 10 best long-term investments
  • Bond funds.
  • Dividend stocks.
  • Value stocks.
  • Target-date funds.
  • Real estate.
  • Small-cap stocks.
  • Robo-advisor portfolio.
  • Roth IRA.

Is aggressive hybrid fund a debt fund?

Aggressive Hybrid Fund : These mutual funds invest in both Stocks and Debt/Bonds. However focus on stocks is higher with 65-80% of total investments in stocks and rest in bonds. Data in this table: Get Annualised historical returns.

What type of mutual funds are safest?

List of Low Risk Risk Mutual Funds in India
Fund NameCategoryRisk
Kotak Equity Arbitrage FundHybridLow
Tata Arbitrage FundHybridLow
Nippon India Arbitrage FundHybridLow
Axis Arbitrage FundHybridLow
7 more rows

What is the percentage of aggressive hybrid fund?

The SEBI mandates require that Aggressive Hybrid Funds must invest between 65% and 80% of the funds in equity or related market securities. The debt component in these funds is typically kept low, between 20% and 35%. This is because all securities have their unique risk profiles.

Should I change my 401k to aggressive?

If you need a lot of money for retirement or want to live an opulent lifestyle, you should invest more aggressively. If your needs are lower, you can afford to be less aggressive. Ability to save. If you have a strong ability to save money, then you can afford to take less risk and still meet your financial goals.

What is the best investment mix for a 65 year old?

At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).

What should a 57 year old asset allocation be?

As you reach your 50s, consider allocating 60% of your portfolio to stocks and 40% to bonds. Adjust those numbers according to your risk tolerance. If risk makes you nervous, decrease the stock percentage and increase the bond percentage.

References

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