Hybrid Fund: Although the stock market reached its peak in 2024, it has experienced a significant drop over the past two months. In the midst of this volatile market environment, investors lean towards putting their money in Hybrid Mutual Funds.
What is a Hybrid Fund?
In November, last month, a total investment of Rs 4,129 crore was placed in hybrid funds. From this, one can infer that hybrid funds are gaining popularity with investors. As stated in the report, the assets managed by this scheme have risen by 45 percent over the course of a year. As per the report from the Association of Mutual Funds in India (Amfi), the AUM of hybrid funds has risen to Rs 8.77 lakh crore over the past year. Over the course of a year, it experienced a rise of Rs 6.02 lakh crore. The question now is why investors are shifting toward hybrid funds. The response is that during the variable conditions of the stock market, investors are leaning towards hybrid funds for secure investment. In hybrid funds, investors have the option to invest in both stocks and bonds. In this scenario, the investor enjoys favorable returns while facing minimal risk.
In October of this year, 2.3 million new accounts were established in hybrid funds. In this scenario, mutual funds are currently concentrating on hybrid funds as well. Numerous investment firms offer investors choices between debt and equity in hybrid forms. Nippon India Multi Asset Fund stands out among these fund houses.
When comparing Nippon Fund to other funds, HDFC Multi Asset has achieved a return of 18.9 percent over the past year. Likewise, Kotak Multi Asset has provided a return of 23.5 percent. In contrast, Nippon Multi Asset has provided a return of 25.93 percent.
Hybrid funds protect investments during the current volatility in the stock market.
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