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Ashish Naik, Fund Manager, Axis Mutual Fund believes that hybrid funds are all-season funds that take advantage of equity and fixed income products to manage returns better. He said, “Aggressive hybrid funds, balanced advantage funds and multi-asset funds are quite attractive for a larger set of investors.”
Depending on their financial goals, investors can opt for a suitable debt-equity mix. Aggressive hybrid funds invest 65-80% in equity and are comparatively less volatile than pure equity.
Investors new to the market can opt for balanced advantage funds. Also, investors can also add another asset class like gold, international equity and real estate through multi asset funds which are known to boost risk-adjusted returns.
Pointing out the advantages of hybrid funds, Ashish said, “MFDs can rebalance their clients’ portfolio automatically through these funds.” Different asset classes move in different directions over time; regular rebalancing helps to maintain the optimum mix of assets necessary for meeting investment goals. He further added, “Such automatic rebalancing spares MFDs from operational hassles and tax implications.”
Going by the fund house’s policy, quality investing helps to create wealth in the longer term and downside protection can create a peaceful investment journey.
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