An underrated star

Aggressive hybrid funds may not steal the limelight like their more popular cousins such as dynamic or multi-asset allocation funds, but for investors seeking a predictable, low-maintenance approach to long-term wealth creation, these funds quietly deliver with their no-fuss, balanced asset allocation. These funds invest 65-80 per cent in equity and the rest in debt, giving you an equity-like growth potential with a debt cushion. Think of them as an auto-rebalancing portfolio combining a flexi-cap and short-duration fund. For new investors, or those seeking long-term growth with less anxiety, aggressive hybrids are an excellent starting point. While it may not match the market highs, it softens the lows, giving you a smoother ride. Further, the auto-rebalancing feature and treatment as an equity-oriented fund offers tax advantage. In essence, it's a simplified version of an investor's portfolio across equity-debt, market capitalisation and credit quality. Highlights & trends Performance: Last financial year, they gave 10 per cent returns, beating BSE 500 TRI's 7 per cent. Their defensive nature has been evident during various market falls. In the seven worst market falls in a calend

This article was originally published on April 17, 2025.