Know Your Investments
Conservative Hybrid Funds are mutual funds that maintain a conservative mix of debt and equity instruments. These funds prioritize capital preservation and income generation, making them suitable for risk-averse investors.
A Conservative Hybrid Fund will put 10% to 25% investment in equity & equity related instruments; and 75% to 90% in Debt instruments.
- Conservative Hybrid Funds balance safety and growth, allocating assets mainly to stable debt instruments for income and a smaller portion to equities for potential capital appreciation. Ideal for conservative investors seeking a mix of capital preservation and modest growth.
Balanced Hybrid Funds are mutual funds that maintain a balanced mix of equity and debt instruments. This allocation offers a blend of capital appreciation and income, catering to investors seeking moderate risk and returns.
A Balanced Hybrid funds will have a 40% to 60% investment in equity and 40% to 60% in Debt instruments.
- Balanced Hybrid Funds provide a balanced approach, allocating assets to a mix of equity and debt instruments. With around 40-60% in equities for growth potential and the rest in debt for stability and income, this allocation suits investors seeking a moderate risk profile.
Aggressive Hybrid Funds are mutual funds that maintain a higher equity allocation, typically around 65-80%, with the rest in debt instruments. This aggressive approach aims for capital appreciation while providing some income.
An Aggressive Hybrid Fund will have 65% to 80% investment in equity and 20% to 35% in Debt instruments.
- Aggressive Hybrid Funds allocate a substantial portion, approximately 65-80%, to equities for growth potential. The rest is invested in debt instruments, providing stability and income. This bold allocation suits investors with a higher risk tolerance.
Dynamic Asset Allocation or Balanced Advantage Funds are mutual funds that dynamically adjust the equity-debt mix based on market conditions, aiming to optimize returns while managing risk for investors.
Such a fund will have Investment in equity or debt that is managed dynamically (0% to 100% in equity and 0% to 100% in Debt instruments).- Dynamic Asset Allocation or Balanced Advantage Funds dynamically adjust equity and debt allocation based on market conditions, aiming to optimize returns by actively managing the portfolio mix. This strategy seeks to balance risk and return effectively.
Multi Asset Allocation Funds are mutual funds that invest in a diversified portfolio of assets across multiple classes like equities, debt, and commodities. This strategy aims for balanced returns.
A Multi Asset Allocation Funds will have Investment in at least 3 asset classes with a minimum allocation of at least 10% in each asset class.
- Multi Asset Allocation Funds diversify across equities, debt, and commodities, adjusting allocation dynamically based on market conditions and the manager's outlook. This aims to optimize returns and manage risk for a well-rounded portfolio.
Arbitrage Funds are mutual funds that capitalize on price differentials in various markets by simultaneously buying and selling securities, aiming to generate returns with minimal risk and market exposure.
An Arbitrage fund will have minimum 65% investment in equity & equity related instruments.
- Arbitrage Funds exploit price differentials in cash and derivative markets, primarily investing in equity instruments. This aims to generate returns by capitalizing on market inefficiencies with minimal risk, appealing to low-risk-seeking investors.
Equity Savings Funds are mutual funds that combine equity, debt, and arbitrage strategies. This hybrid approach aims for capital appreciation, income generation, and downside protection, offering a balanced investment solution.
An Equity Savings Fund will have a mix of equity and equity related instruments (min.65%), debt instruments (min.10%) and derivatives (min. for hedging to be specified in the SID).
- Equity Savings Funds combine equity, debt, and arbitrage, aiming for capital appreciation, income generation, and downside protection. With a mix of equity, debt, and derivatives, these funds offer a balanced investment solution.
Who Should Invest In Equity Mutual Funds
Types of Mutual Funds
EQUITY
DEBT
Debt funds primarily invest in fixed-income securities like bonds, providing stability and income generation, making them suitable for risk-averse investors seeking steady returns.
SOLUTION ORIENTED
Solution-oriented mutual funds target specific financial goals, offering tailored investment strategies to meet long term objectives.
OTHERS
Other funds include index funds & FOFs. Index funds replicate market indices and FOFs which invest in other mutual funds, providing diversified investment options.
