Aggressive hybrid vs multi-asset funds: Which is better for new investors?

What are aggressive hybrid funds?

A type of hybrid fund that invests up to 65-80 per cent in equities and 20-35 per cent in debt.

What are multi-asset allocation funds?

A type of hybrid fund that invests across three or more asset classes (equity, debt, gold, real estate), allocating at least 10 per cent to each.

Performance

Over three years, aggressive hybrids have consistently beaten the average multi-asset funds.

Resilience

Aggressive hybrid funds have shown resilience in market downturns, with 25 of 45 outperforming the BSE 500 index 75 per cent of the time since March 2019.

Taxation

Aggressive hybrid funds are taxed as equity funds. The tax on multi-asset funds varies based on equity allocation and can be taxed like debt or equity funds.

So, which is a more compelling choice for a first-time investor?

Read our complete take in our latest article.