Aggressive Hybrid Fund: After investing in mutual funds, people withdraw money in time because it is risky. On the other hand, most people want to invest in those funds, in which the returns are completely guaranteed. Are you also looking for smart investment options? In such a situation, an aggressive hybrid fund can prove to be a great option for you. Some people start investing without knowing about it. They may get to see situations like sinking money due to risk in future.
What is an Aggressive Hybrid Fund
An aggressive hybrid fund is similar to a mutual fund. After investing in this scheme, most of the funds are invested in equity or securities considering this as the base. If put in simple words, it invests in equity as well as debt. This is the reason why Aggressive Hybrid Funds are also called Balanced Hybrid Funds. The division of these funds is also according to the amount. By investing in it, you can earn more in less time.
Aggressive Hybrid Fund splits like this
According to the rules issued by SEBI, after investing in hybrid funds, a minimum of 65% and a maximum of 80% of this amount are directly invested in any equity or its underlying securities. Not only this, a minimum of 20% and a maximum of 35% of these funds are invested in debt or money market. This is done to maintain balance. There is also a fixed time period for investing in it.
Who can invest in Aggressive Hybrid Funds
Aggressive Hybrid Funds are for those who prefer capital appreciation through mutual funds. For those people this scheme can prove to be a good option. Not only this, if you are going to invest in it, then know that aggressive hybrid funds are full of risk. Apart from this, if compared to pure equity funds, then it can be slightly less volatile. You can invest in it for 3 or 5 years.