Hybrid Mutual Funds:
As equity markets touch new highs, hybrid mutual fund schemes are gaining popularity among investors. Wealth managers are increasingly recommending these funds, especially for investors who find it difficult to rebalance investments on their own. Hybrid mutual funds are mutual fund schemes that invest in more than one asset class, mainly equity (stocks) and debt (bonds), and in some cases gold, REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts). Their primary objective is to provide a balanced mix of growth and stability by distributing investments across different assets.They are also known as asset allocation funds because they follow a pre-decided investment pattern. Hybrid funds follow a fixed or flexible mix of investments. A part of the money is put into equity for growth, while the rest goes into debt or other assets for safety. The fund manager regularly rebalances the portfolio to keep this mix intact, so the risk stays under control without any effort from the investor.
