Once the investor has defined his SMART financial goal, he can choose from the following categories of hybrid funds, according to his risk profile:
Conservative Funds: These are for risk-averse investors, with at most 25% of the corpus being invested in equity, and the rest in fixed-income securities. They are fairly stable and investors can derive periodic income from them.
Moderate Funds: They invest almost equally in both debt and equity instruments, with the risk element slightly higher than the conservative funds, due to higher exposure to equities.
Aggressive Funds: These funds invest almost 65-80% of their corpuses in equity and the remaining in debt, and are highly suitable for young investors looking for capital appreciation by bearing higher risk.