How-to hybrid fund fund selection

How to select a hybrid mutual fund

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Hybrid fund selection depends entirely on the sub-category. Aggressive hybrid replaces pure equity for moderate-risk investors; balanced advantage is a defensive equity proxy.

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Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Hybrid drawdowns: 15-30% in bear markets depending on sub-category.

Step-by-step procedure

See the procedure infobox above for the eight steps.

Sub-category quick reference

Sub-categoryEquityDebtTax
Aggressive Hybrid65-80%20-35%Equity
Balanced Advantage30-80% dynamicrestEquity (via derivatives)
Conservative Hybrid10-25%75-90%Debt
Equity Savings65%+ gross (25-30% net)restEquity
Arbitrage~100% arbitrage-Equity

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. SEBI Categorisation Circular, October 2017.
  3. Income Tax Act, 1961, Sections 50AA, 112A.
  4. AMFI Best Practice Guidelines.

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