Retail investors who want to prioritise a balance between conservative risk management and potential growth opportunities may find aggressive hybrid funds to be a suitable option now. In these funds, asset management companies invest up to 80% of the portfolio in equities and the rest in debt which helps in asset allocation.
During times of market volatility, fund managers rebalance the asset allocation to generate higher risk-adjusted returns. Aggressive hybrid funds have demonstrated their ability to provide downside protection during volatile market conditions, while delivering competitive returns over the long term.
