
In what's been a decidedly directionless year for the markets, aggressive hybrid funds have been a relative source of comfort. From the early year's buoyancy to RBI hiking rates in May to prolonged pessimism after that, 2022 has been a picture of market volatility. It is these times that reinforces our belief in static asset allocation over dynamically-managed portfolios. Hence, the importance of aggressive hybrid funds for a conservative or a first-time investor. If you see the chart 'Aggressive hybrid vs dynamic asset-allocation funds' below, a five-year rolling return comparison shows that aggressive hybrids emerge clear winners. While their comparatively-rigid equity exposure makes them susceptible to higher volatility, these funds are poised to deliver healthy returns in the long run. Here are some of the trends and movements we have recently observed in the aggressive hybrids category. ● Gaining momentum Investors started coming back to aggressive hybrid funds late last year. That trend has continued, and we are glad to report that. ● Performance Given the volatile markets, the category's overall performance has been fairly mild, with average year-to-date returns at 2.11 per cent for dir
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