Best of both worlds: Hybrid funds focus on capital appreciation in the long run and income generation in short-run, via a portfolio consisting of both equity and debt.
High Return, Low Risk: Investment in Equity leads to higher returns, and the risk component is reduced by investment in Debt.
Stability: The debt component brings in stability, balancing market volatility seen in the equity component.
Diversification: Hybrid funds achieve diversification in its truest sense by simultaneously investing in different asset classes like stocks, bonds etc.
Professional Investment Management: These are managed by professional fund managers who have expertise in selecting the right investment opportunities. Thus, it saves the investor’s time and effort of researching.
Affordability: Anyone can start investing for as little as Rs.500 in the fund of their choice .
Safety: In India, hybrid funds are well regulated by the Securities and Exchange Board of India (SEBI), which protects the investors’ interests.
Liquidity: The investor may invest and withdraw his money at any time he likes. This gives him easy liquidity.
