Think of an investment option where the money invested in stock also increases continuously and it is also safe. Such a way of investment, which gives a balanced way to dreams to meet your economic goals. Hybrid mutual funds fit this criterion. You can create a variety of portfolio through the same fund by mixing equity and date funds.
Hybrid funds are a smart option for investors who avoid taking high risk and focus on stability with profit. Let’s together with Nivesh Ka Sahi Kadam, understand what hybrid mutual funds are. What are the tax rules for you to invest in them. Also, if you have complete information, you will also know how easy it will be to make investment decisions.
What are hybrid mutual funds?
Hybrid mutual funds invest mixed in equity (stock) and date instruments (bond, fixed-incordinate securities), etc. Sometimes it also includes gold. Investors can take advantage of the fast in the market through equity funds, which can earn good returns. Date funds give stability to the portfolio and they also protect your money even amidst market fluctuations. This mixed method of investment limits the potential risk from investment in equity. Also, gives better returns than date funds. Hybrid funds are the right choice to meet home from buying homes to retirement plans.
How many types of hybrid mutual funds are there
1. Equity-Oriented Hybrid Fund: These funds mainly invest in equity (65% or more). The remaining amount is invested in date or other bond assets. Placing good returns by taking risks up to medium levels are ideal for investors (for example, aggressive hybrid funds).
2. Date-oriented hybrid funds: Under this, a large share (60%-80%) in debt funds and less invested in equity. They have a slightly limited ability to grow money, but are the best options for stability and regular income seeking investors. (Such as Conservative Hybrid Fund).
3. Balanced Hybrid Fund: Under this, both equity and date (40%-60%in each) are invested in almost equal proportion. They also give stability with better returns.
4. Dynamic Asset Allocation Fund: These funds make changes easily in their equity-date funds based on market conditions as per the need. Its purpose is to make money according to market conditions while controlling the risk. (Such as Balanced Advantage Fund).
5. Multi-asset allocation funds: They invest in many more bonds, assets and fields including equity, date and gold to reduce volatility along with increasing diversity in portfolio.
Why should you invest in hybrid mutual funds?
Hybrid funds are ideal for investors looking for options mentioned below:
● Balance between risk and profit: Investment limits in equity and date funds limit the impact of market fluctuations. Also, they also give better returns.
● Variety: The risk of investing in many types of funds is limited, as the poor performance of one or two funds does not affect the entire amount of investment.
● target -based investment: Whether your goal is to invest in a short time or in a long time, hybrid funds are capable of fulfilling different economic goals.
● convenient: There is no need to manage equity and date investment separately by investing in the same fund.
How to invest in hybrid mutual funds
● Set your goals: Equity-based funds can choose to meet their long-term economic goals or a date-based funds can choose for regular income and stability.
● Assess the ability to take risk: Agressive hybrid funds are the right choice for investors ready to take risks to higher than medium levels, while traditional funds are good options for investors who want to limit the risk limited.
● See the performance of the fund: Continuity should be assessed in the performance of any fund. The ability to limit risk (such as information ratio) and ratio of expenses should be kept. With this, you will be able to evaluate your money accurately.
● Take opinion from an expert: Understanding economic experts needs and economic goals, you can suggest the right hybrid funds, correcting your investment strategy and matching your portfolio.
● Always keep taking important information: The platforms like Mutual Funds Sahi Hai tell about different funds and investment options and help you decide the correct investment with complete information.
Tax related rules
1. Equity-based hybrid funds (65%+ equity):
● Funds for low-time (STCG): The benefits from units sold within 1 year are 15% tax.
● Long -term capital gains (LTCG): 10% tax is levied at a profit of more than ₹ 1 lakh from units kept for more than 1 year.
2. Date-based hybrid fund (60%+ date): Whatever be the period of funding, but the profit is levied according to the income tax slab of tax investors.
3. Dividend: Investors are taxed according to the income tax rate and TDS is applied to a dividend of more than 5,000 annually.
Hybrid mutual funds give a balanced and diversity -filled attitude for investment. To meet different economic goals, they are also able to give stability with better returns in investment. Knowing how many types of hybrid funds are, you can choose the right option according to your goals. Through Mutual Funds Sahi Hai, we make you strong to create a safe economic future. Nivesh ka sahi kadam, connecting with Hybrid Fund options and take your move towards making money with full confidence.
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Disclaimer: Mutual fund investment is subject to market risk. Read all the documents related to the scheme carefully before taking the investment decision. The performance of the past is not a guarantee of the same results in future.