Aggressive Hybrid Fund: What Happens When Patience & Aggression Join Hands?

Growth depends on the two major factors- aggression and patience. Aggression on one hand, works as a fuel to the desires, and patience on the other hand, helps in waiting for the right opportunity to act. When these characteristics work hand-in-hand, miracles are bound to happen. The same mindset works in the mutual fund market with aggressive hybrid funds working on the same footwork. Such funds are a perfect blend of aggression and patience that makes sure that an investor earns good returns in the finance market. This write-up is drafted to briefly introduce the Indian investors about this category of mutual fund.

What Are Aggressive Hybrid Funds?

Aggressive Hybrid Funds is a category of mutual fund that exposes 65%-80% of the assets in the equities and the remaining 20%-35% in the debt and money market instruments. The asset allocation in the asset classes depends on the market conditions. Therefore, when the market is bullish, such funds allocates more percentage of assets in the equity market and thus displays aggressive characteristics. Moreover, when the market follows a downtrend path, aggressive hybrid funds allocates more number of assets in the debt instruments and wait for the right opportunity to surge good gains thus, symbolizing patience characteristics.

By investing in the top performing aggressive hybrid funds, an investor can save his corpus from the market turbulence. Also, in the equities the fund further diversifies the asset in the large cap, mid cap, and small cap stocks to provide optimum returns to the investors.

Instances When Aggressive Hybrid Funds Can Prove Beneficial to the Investors

1. Market Fluctuations: The worst thing about the finance market is that it is unpredictable and the best thing lies in the fact that mutual fund market always bounce back harder. For instance, the year 2018 was a disappointing year causing a market downfall but the Lok Sabha Election results changed the complete scenario. In such market conditions, aggressive mutual funds can be the safest home to the investors as the fund manager can modify the asset allocation accordingly.
2. Grab Every Market Opportunity: The fund manager of these hybrid funds aims to capture every market opportunity. For instance, when the market hit the bearish trend, the managers will buy more units at low NAVs and when the market will surge good growth, the fund managers will sell the accumulated units at higher NAVs thus, ensuring that the investors makes profit during each market cycles.
3. Current Market Scenario: The track record of aggressive hybrid funds has been amazing in the long term. With annualized return ranging between 11% to 12%, it is one of the best mutual fund investment in India. Furthermore, the market conditions pertaining in the finance market will further aid such investment plans in surging excellent gains.

Who Should Park His Cash in Aggressive Hybrid Funds?

Investors With Moderately High Risk-Appetite: 

Since aggressive hybrid funds invests major portion of the assets in the equities therefore, such funds have moderately high risk attached to them. Thus, an investor who is willing to take high risk in search of capital appreciation can include these funds in the portfolio.

Investors in Need to Create Diversified Portfolio:

Aggressive Hybrid Funds is a good pick for the investors who want to create a diversified portfolio. These hybrid funds can aid such investors in riding out market volatility along with healthy gains.

Aggressive Hybrid Fund is the best SIP plan that can help an individual in achieving good growth on his invested amount along with the lower risk. Thus, start your mutual fund investment in this category of mutual funds as soon as possible. For further assistance, you can have an overview of the top recommended aggressive hybrid funds available on the website of MySIPonline. Our experts review the previous past performance, portfolio allocation, and future growth prospect of the scheme before recommending it to the investors. You can also get in touch with them at- 9660032889.