Top 5 Aggressive Hybrid Mutual Funds For Investment in November 2024
Hybrid mutual funds are a type of mutual fund that invests in a mix of asset classes, mainly focusing on equity and debt, to maintain a balanced portfolio. The funds are expected to show their potential in the upcoming year. Mutual fund experts suggest that the markets may remain vigilant and investors should also approach with caution.
This mutual fund is one of the popular hybrid mutual fund categories. According to SEBI norms, these schemes are required to invest 65–80% in equity stocks and 20–35% in debt. This diversified portfolio helps to deal with market volatility more effectively. When the equity market is in turbulence, the debt component of the portfolio eases the impact; this helps inexperienced investors for continuous investments without taking any stress about volatility.
Who Can Invest in Aggressive Hybrid Mutual Funds?
If the market is uncertain and volatile, then you can invest in aggressive hybrid mutual funds. If you want to achieve long-term financial goals, mutual fund advisors recommend conservative equity investors invest in aggressive hybrid mutual funds.
Conservative equity investors and Conservative investors are different. A conservative equity investor doesn’t want to take risks, and these investors invest their money in bonds, bank deposits, etc. that provide expected returns to them. On the other hand, equity investors seek to grow their wealth without minimizing exposure to extreme volatility.
What is a Mixed Portfolio?
A mixed portfolio is a collection of investments that includes different types of assets like stocks, cash, bonds, and mutual funds. A mixed portfolio is another advantage of investing in this scheme, which includes both equity and debt. Fund managers constantly book profits to maintain the asset allocation, which helps boost the returns.
If the equity allocation exceeds the original plan in a bull market, then the fund manager sells the stocks to maintain the allocation. Booking profit over a long period would increase their returns. When you are booking a profit, you have to pay taxes on the profit of over Rs. 1 lakh in a financial year. In the case of a mutual fund, there is no requirement to pay taxes. This profit can help investors increase their returns.
Best Aggressive Hybrid Schemes to Invest in November 2024
- SBI Equity Hybrid Fund
- Canara Robeco Equity Hybrid Fund
- Mirae Asset Hybrid Equity Fund
- ICICI Prudential Equity and Debt Fund
- Quant Absolute Fund
SBI Equity Hybrid Fund has been in the top fourth quartile for the last six months. Mirae Asset Hybrid Equity Fund has been in the top third quartile for the last four months. Before that, this scheme had been in the fourth quartile. Canara Robeco Equity Hybrid Fund has been in the top third quartile for the last 18 months.
