Go for aggressive hybrid funds for low volatility

THEY SCORE OVER DIVERSIFIED LARGE-CAP FUNDS IN RISK-ADJUSTED RETURNS

- SAIKAT NEOGI

INDIVIDUALS SEEKING MODERATE risk and smoother returns should consider aggressive hybrid funds. These funds capture gains from both equity market recovery and debt market appreciation, making a compelling choice for investors.

These funds have an equity allocation ranging between 65% to 80% and debt having between 20% to 35%. The debt component of these funds becomes particularly advantageous during a rate-cut cycle.

As bond prices generally rise when interest rates fall, the debt portion stands to benefit through capital gains, apart from regular interest income.