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Three advantages of aggressive hybrid funds over equity funds

While the comparison is unjust, we list three advantages for a first-time or a conservative investor

Aggressive hybrid funds or equity funds: Which to pick?AI-generated image

हिंदी में भी पढ़ें read-in-hindi

How are aggressive hybrid funds advantageous over pure equity funds? - Anonymous You can't directly compare equity and aggressive hybrid funds. It's like comparing potatoes and pineapples. Both funds are very different. Pure equity funds invest predominantly in equities, while aggressive hybrids allocate 65-80 per cent to equities and the rest to debt. The equity allocation offers the potential for higher returns, while the debt allocation provides relative safety. That's why these funds are ideal for beginners or conservative investors. Still, if you must compare aggressive hybrids with equity funds, here are a few advantages of the former over the latter. 1) Downside protection Due to their decent debt allocation, aggre

This article was originally published on May 07, 2024.


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