Equity-oriented aggressive hybrid funds are taxed at 20% STCG and 12.5% LTCG for income above Rs. 1.25 lakh. Debt-oriented aggressive hybrid funds attract the same taxes as debt funds, and the STCG is added to the investor’s gross income and taxed at the slab rate under which they fall. The LTCG is taxed at 20% along with indexation.
Investing in aggressive hybrid funds may be considered a favourable option depending on the investor’s financial goals, investment horizon, and risk tolerance. However, they also need to consider other factors like balanced risks and returns, the advantages of diversification and professional fund management, and the simplified investment that comes with it.
The exit load for an aggressive hybrid fund varies depending on the particular fund and the house that manages it. The mutual fund charges an exit load when the investor exits it before a specified period. The fee is charged to discourage short-term trading and for protecting long-term investor interests.
Investments in aggressive mutual funds depend on several factors, such as the investor’s financial goals, investment horizon, risk tolerance, and overall investment strategy. The top aggressive hybrid funds are suitable investment options for investors who seek higher growth potential with higher risk levels.
Expected returns in India vary since they depend on factors such as asset allocation, market conditions, economic outlook, and fund management.
The key risks associated with investing in aggressive mutual funds are related to market volatility, interest rates, liquidity, credit, management, inflation, and asset allocation.