Hybrid: Balanced Hybrid

What is it?

Balanced Hybrid funds invest in almost equal proportions in both equity and debt assets. According to the SEBI guidelines, they must invest between 40% to 60% in equities and the remaining in debt instruments. Arbitrage instruments are not allowed in this category

Objective

The objective of the fund is to generate superior returns by managing the favorable risk-reward ratio at a portfolio level. These funds aim to generate better returns compared to debt funds while taking a lower risk compared to equity funds

Suitability and opinion

These funds are ideal for investors with moderate risk appetites aiming to generate decent returns while taking a lower risk. These mutual funds generally invest half of the pooled funds in equity and the remaining in debt assets. This makes them suitable for conservative equity investors and first-time equity investors as these funds have lower volatility compared to pure equity funds and higher returns compared to pure debt funds. We believe that conservative equity investors can consider this category with an ideal time horizon of 5 to 7 years.