Aggressive hybrid funds are very different from hybrid funds. It’s like comparing a batsman with a bowler.

Equity funds invest predominantly in equities, whereas aggressive hybrid funds invest 65-80 per cent in equities and the rest in debt.

Since aggressive hybrids invest in debt as well, they are ideal for conservative or first-time investors. Let’s understand their advantages in the next few slides.

Aggressive hybrids provide a much-needed cushion during turbulent times, thanks to their debt allocation. They fall less than pure equity funds.

A 10-year SIP in an average aggressive hybrid fund would have returned 13.77 per cent, which is only slightly less than the S&P BSE Sensex and flexi-cap funds.

Aggressive hybrids automatically rebalance your portfolio at regular intervals, but they do so tax-efficiently.

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