Hybrid mutual funds are investment vehicles that combine different asset classes, such as stocks, bonds, and cash equivalents, within a single fund. These funds aim to provide diversification and balance by blending the growth potential of equities with the stability of fixed-income instruments. They offer investors the flexibility to choose from various types based on their risk tolerance and investment goals.
1. Balanced Hybrid Funds: These funds maintain a balance between equity and debt instruments, offering moderate growth potential along with stability.
2. Aggressive Hybrid Funds: With a higher allocation to equities, these funds aim for capital appreciation while also providing some stability through debt instruments.
3. Conservative Hybrid Funds: These funds focus more on debt instruments, providing stability and regular income with a smaller equity component for modest growth.
4. Dynamic Asset Allocation/Balanced Advantage Funds: These funds dynamically allocate assets between equity and debt based on market conditions, aiming to benefit from market trends and manage risks effectively.
5. Multi-Asset Allocation Funds: These funds invest in a combination of equity, debt, and other asset classes like gold, international stocks, or real estate, providing diversification across multiple investment avenues.
6. Arbitrage Funds: These funds take advantage of price discrepancies in different markets by simultaneously buying and selling securities, aiming to generate low-risk returns.
7. Equity Savings Funds: These funds allocate investments across equity, debt, and arbitrage opportunities, aiming to provide a balance of capital appreciation, income generation, and risk management.
8. Monthly Income Plans: These funds primarily invest in debt instruments while allocating a smaller portion to equities, aiming to generate regular income along with some capital appreciation.
9. Capital Protection Funds: These funds focus on preserving the principal amount by investing in debt securities while also allocating a small portion to equities for potential growth.
10. Equity-oriented Hybrid Funds: These funds have a higher allocation to equities, aiming for capital appreciation, with a smaller portion invested in debt instruments for stability and income generation.
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