INVESTMENTS
AGGRESSIVE HYBRID MUTUAL FUND
What is Aggressive Hybrid Mutual Fund?
Aggressive Hybrid Funds are mutual funds that invest mainly in stocks along with a limited allocation in debt instruments. These funds can have maximum exposure in equity up to 75 percent with at least 25 percent allocation to FD-like instruments.
This strategy of spreading the investment in different avenues ensures that aggressive hybrid funds are less risky than pure equity funds. And at the same time, they have the potential to offer similar returns as equity funds in the long term.
How Does Aggressive Hybrid Fund Works?
Aggressive hybrid funds combine their investments in debt and equity. These funds are required by law to allocate at least 20% of their assets to debt securities. Only 80% of the assets may be allocated to equities and equity-related products.
Equity has the capacity to produce profitable returns and long-term prosperity for investors as an asset class. Debt, on the other hand, produces consistent income and stability. The fund essentially aims to provide the best of both asset classes in a single investment product by combining debt and equity. When the stock market is doing well, their equity component helps to generate returns; when the market is underperforming, the debt component of the funds acts as a buffer to give stability in returns.
Who Invest in Aggressive Hybrid Mutual Fund?
These funds are appropriate for those who wish to begin investing in stocks but do not wish to take on the amount of risk associated with pure stock funds. The debt component makes guarantee that the investment value doesn't decrease as much as it would with just pure equity funds during market drops.
Since stocks make up the majority of the investments made in these funds, you should invest in them with a moderate to long time horizon. Ideally, you may use these assets to invest in order to reach your financial objectives in the next three to five years. It will enable the fund to reach its maximum potential and help you reach your financial objectives.
Investing in aggressive hybrid funds might be a smart option for investors who are getting close to retirement age but haven't saved enough for their retirement corpus.
Things to consider before investing in Aggressive Hybrid Funds:
Aggressive hybrid funds are not as risky as pure equity mutual funds. But since they have a significant equity component, they do have a moderately high risk. So when the market corrects, you will see a fall in the investment value, but it is lesser than how much a pure equity mutual fund will fall.
If you have medium-term goals like saving money for a trip or purchasing a car, these funds are a suitable alternative. Since you are exposed to a significant amount of stock, be prepared that you may need to extend the time period for your objective if markets correct or remain flat.
Aggressive hybrid funds charge an annual fee to give you fund management services, just like any other mutual fund plan. A greater expense ratio reduces the fund's earnings. Choose an investing fund wisely by choosing one with a lower expense ratio. Because direct plans have a lower expenditure ratio than ordinary plans, they may thus offer better returns.
Advantages of Aggressive Hybrid Mutual Fund:
Top Perfoming Schemes of Aggressive Hybrid Mutual Fund
Bank of India Mid & Small Cap Equity & Debt Fund Direct-Growth is a Aggressive Hybrid mutual fund scheme from Bank Of India Mutual Fund. This fund has been in existence for 7 yrs 5 m, having been launched on 29/06/2016. Bank of India Mid & Small Cap Equity & Debt Fund Direct-Growth has ₹493 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 1.55%, which is higher than what most other Aggressive Hybrid funds charge. Currently, the fund has a 77.14% allocation to equity and 20.54% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
Quant Absolute Fund Direct-Growth is a Aggressive Hybrid mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Quant Absolute Fund Direct-Growth has ₹1,354 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.75%, which is close to what most other Aggressive Hybrid funds charge. Currently, the fund has a 73.63% allocation to equity and 12.53% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
ICICI Prudential Equity & Debt Fund Direct-Growth is a Aggressive Hybrid mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. ICICI Prudential Equity & Debt Fund Direct-Growth has ₹26,183 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.11%, which is higher than what most other Aggressive Hybrid funds charge. Currently, the fund has a 69.61% allocation to equity and 27.95% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
JM Aggressive Hybrid Fund Direct-Growth is a Aggressive Hybrid mutual fund scheme from Jm Financial Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. JM Aggressive Hybrid Fund Direct-Growth has ₹93 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 0.9%, which is close to what most other Aggressive Hybrid funds charge. Currently, the fund has a 70.00% allocation to equity and 18.15% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
Edelweiss Aggressive Hybrid Fund Direct - Growth is a Aggressive Hybrid mutual fund scheme from Edelweiss Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Edelweiss Aggressive Hybrid Fund Direct - Growth has ₹940 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.52%, which is less than what most other Aggressive Hybrid funds charge. Currently, the fund has a 75.49% allocation to equity and 29.47% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
UTI Aggressive Hybrid Fund Direct Fund-Growth is a Aggressive Hybrid mutual fund scheme from Uti Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. UTI Aggressive Hybrid Fund Direct Fund-Growth has ₹4,737 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.3%, which is higher than what most other Aggressive Hybrid funds charge. Currently, the fund has a 70.83% allocation to equity and 26.82% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
Kotak Equity Hybrid Fund Direct-Growth is a Aggressive Hybrid mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 9 yrs 1 m, having been launched on 01/11/2014. Kotak Equity Hybrid Fund Direct-Growth has ₹4,252 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.47%, which is less than what most other Aggressive Hybrid funds charge. Currently, the fund has a 69.11% allocation to equity and 28.69% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
HDFC Hybrid Equity Fund Direct Plan-Growth is a Aggressive Hybrid mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. HDFC Hybrid Equity Fund Direct Plan-Growth has ₹20,539 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.08%, which is higher than what most other Aggressive Hybrid funds charge. Currently, the fund has a 65.59% allocation to equity and 32.29% to Debt.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDING
ALLOCATION BY MARKET CAPITALIZATION
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