This veteran fund has been in existence since 1999 and has witnessed several market cycles. Aggressive hybrid funds invest predominantly in equity stocks with some allocation to bonds. The latter helps it limit losses when the equity markets fall sharply. Therefore, they tend to be relatively less volatile than pure equity funds. They won't deliver blockbuster returns during bull runs, but they'll provide more downside protection during market corrections. This makes them suitable for conservative or first-time equity investors who are not familiar with the sharp ups and downs of the equity market. Investment strategy and portfolio The fund follows a disciplined asset allocation. The equity component is kept in a narrow range of 70-75 per cent, with the rest invested in debt/cash. About three-fourths of the equity portfolio comprises core holdings, while about a fourth is invested tactically to seize opportunities like turnaround, special situations, etc. For the core portfolio, the fund manager looks for companies that are market leaders in their segment/sector. According to them, these businesses bring scale advantages like industry-leading profitability and cash flows and can absorb macro shocks without compromising long-term goals. Besides, the fund generally avoids businesses that require heavy capex and hence have high leverage, whose business cycles are difficult to predict (such as commodities) and where the government intervention is significant. Therefore, it may look like a laggard during phases when the se
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