Hybrid funds are evaluated on the basis of consistency in return, fund management team, vintage, corpus, risk, return, and expense ratio. The best hybrid funds are those which consistently lie in the top 25% of their peer group over a period of time. However, it is important to see the risk that they have taken to achieve those returns. It is also important to look at the launch date to understand the period of existence and performance across the period.
Hybrid funds are funds that invest in a blend of more than one asset class. These could be debt/fixed deposit type of securities, equity, commodities (gold). Mostly hybrid funds invest in debt and equity in various proportions.
Balanced funds are just one type of hybrid funds. The name suggests balanced funds invest an equal amount in stocks and FD like instruments.
Even though hybrid Funds are considered riskier than debt funds, they are safer than equity funds. They offer comparatively returns and lower risks.
Hybrid funds can be beneficial for investors seeking a balance between growth and income. They offer diversification and reduced risk compared to pure equity funds, making them suitable for moderate risk tolerance.
The choice between hybrid and equity funds depends on individual risk tolerance and investment objectives. Hybrid funds offer diversification and lower risk, while equity funds aim for higher growth potential but come with higher risk.
The return rate of hybrid funds varies depending on the market conditions and the specific fund's investment strategy. Historically, hybrid funds have offered moderate returns, typically higher than fixed-income funds but lower than pure equity funds.
Yes, hybrid mutual funds are subject to taxation on capital gains.
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