Is it the right time to increase exposure to hybrid funds?.

Is it the right time to increase exposure to hybrid funds?.

by 5paisa Research Team Last Updated: Oct 29, 2021 - 03:42 pm 50.3k Views
Listen icon

In the last three months, the asset under management (AUM) of funds dedicated to the Hybrid category has increased by 13%.

When the equity market is trading at a lofty valuation, most of the investors either book profit or do a rebalancing of their portfolio. Nevertheless, some investors do not disturb their existing investment or portfolio and invest the additional amount towards hybrid funds. These are the funds that invest in a mix of equity, debt and other commodities also such as gold.  In the last three months ending August 2021, asset under management (AUM) of funds dedicated to the Hybrid category has increased by 13%.

AUM of Hybrid Funds  

 

 

 

 

Category  

Jun-21  

Jul-21  

Aug-21  

Increase  

Conservative Hybrid Fund  

                14,563.55   

17,079.50  

17,378.04  

19.3%  

Balanced Hybrid Fund/Aggressive Hybrid Fund  

            1,31,474.85   

1,35,589.18  

1,40,797.39  

7.1%  

Dynamic Asset Allocation/Balanced Advantage Fund  

            1,19,262.08   

1,22,591.86  

1,41,492.63  

18.6%  

Multi Asset Allocation Fund  

                16,072.70   

16,432.03  

17,059.05  

6.1%  

Arbitrage Fund  

                94,840.95   

1,08,177.88  

1,08,251.29  

14.1%  

Equity Savings Fund  

                11,379.89   

12,031.15  

13,135.98  

15.4%  

   

            3,87,594.01   

           4,11,901.60   

          4,38,114.38   

13.0%  

Source: AMFI  

   

   

   

   

The highest increase in AUM in absolute terms was observed in the Dynamic Asset Allocation/Balanced Advantage Fund. They saw an increase of almost 19% in their AUM in the last three months. This is considered to be the best and most suited category in an uncertain market. As opposed to static allocation funds, the dynamic funding mechanism of the category helps the fund to be in a better position to exploit the opportunity.

Conservative Hybrid Fund also saw more than 19.3% growth in their AUM albeit at a lower base. These funds are suited for a conservative investor as they have major exposure to debt and lower exposure to equity.

Looking at the current market situation and different options available within the hybrid fund, investors may go for it. They can choose the right hybrid fund category depending upon their risk profile. These funds will help you to diversify your investment and also lower investment risk along with better portfolio management.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.