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What is the equity market-cap mandate for aggressive hybrid funds?

While there is no set mandate, it is largely similar to flexi-cap funds

Do aggressive hybrid funds have an equity market-cap mandate?AI-generated image

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I know that aggressive hybrid funds are mandated to invest 65 to 80 per cent of their portfolio in equities and the rest in fixed income. But is there any mandate for the market capitalisation breakdown within the equity portion? Does the fund manager have the liberty, like in a flexi-cap fund? Additionally, is there any mandate for the debt portion? - Gourav Gupta

The market regulator SEBI does not mandate a specific market-capitalisation breakdown for the equity portion of aggressive hybrid funds. That said, these funds maintain a structure largely similar to flexi-cap funds, with a small tilt towards large-caps.

Aggressive hybrid funds have consistently maintained a higher allocation of around 76 per cent to large-cap stocks. The allocation to mid-caps and small-caps hovers around 15 per cent and 8 per cent, respectively. Meanwhile, flexi-cap funds have maintained an allocation of around 71 per cent to large-caps. The allocation to mid- and small-caps is around 19 per cent and 10 per cent, respectively.

There is no set mandate for the debt portion either. Still, a major chunk (over 80 per cent of the debt portfolio) usually comprises highest-grade debt instruments, like sovereign (SOV), AAA, A1+, and AA+.

How to check the asset allocation of your fund?

Visit Value Research Online. Use the search bar at the top to find your fund. On the fund page, click on the 'Portfolio' tab. Here, you will find all the details regarding your fund's equity and debt allocations.

Also read: Between flexi-cap and aggressive hybrid funds, where shall I invest Rs 1 lakh?

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