Question 1

Types of Hybrid Funds

Accepted Answer

Hybrid funds can be classified into different sub-categories as below: Conservative Hybrid Fund – Such funds invest 75% to 90% in debt while investing 10% to 25% in equities. Balanced Hybrid Fund - Such funds invest 40% to 60% in both equities and debt. Aggressive Hybrid Fund - Such funds invest 65% to 80% in equities while investing 20% to 35% in debt. Dynamic Asset Allocation or Balanced Advantage Fund – Such funds dynamically manage equity/ debt asset allocation within the investment portfolio depending upon the relative valuations of the asset classes. Multi Asset Allocation Fund – Such funds invest in at least three asset classes with minimum 10% allocation in each of these asset classes. Arbitrage Fund – Such funds adopt arbitrage strategy for generating returns while maintaining minimum 65% allocation in equities. Equity Savings – Such funds invest in equity, debt and arbitrage strategies with minimum 65% allocation to equities and 10% allocation to debt.

Question 2

Returns from Hybrid funds

Accepted Answer

The returns on hybrid funds depend upon the performance of the underlying portfolio. However, since investments in such funds is diversified across other asset classes besides equity, these funds are relatively less volatile than pure equity funds. However, the corresponding returns may also be lower due to the same reason. Past performance is not a guarantee of future returns and may or may not be sustained in the future.

Question 3

How to invest in Hybrid Funds?

Accepted Answer

The process of investing in hybrid funds is the same as that for investing in any other mutual fund category. One can invest in hybrid funds through the website/ mobile application of the mutual fund house or physically submit the application form at official Points of Acceptance (POA).

UTI Hybrid Funds

Hybrid Funds

Why Invest in Hybrid Funds?

How do Hybrid funds work?

Features of Hybrid Mutual Funds.

Types of Hybrid Funds

How to Invest in Hybrid Mutual Funds?

Returns from Hybrid funds

How are Hybrid Fund Taxed?