Investors are seeking safer equity-oriented products amid market uncertainty. Aggressive hybrid funds are gaining traction, offering returns comparable to equity but with significantly lower volatility. These funds also provide tax efficiency for high-net-worth individuals due to their structure.

Hybrid funds emerge as a low volatility alternative to equity

Investors Seek Safer Equity-Oriented Products Amid Market Uncertainty

Aggressive hybrid funds are gaining traction, offering returns comparable to equity but with significantly lower volatility, making them a preferred choice for high-net-worth individuals.

Market Uncertainty Leads to Increased Demand for Predictable Returns

As equity markets struggle to find momentum, investors are opting for equity-oriented products that offer greater predictability in returns. Financial advisers report a rise in demand for such products.

Aggressive Hybrid Funds: A Safer Alternative

Offer returns comparable to equity but with significantly lower volatility.
Provide tax efficiency for high-net-worth individuals due to their structure.

Performance of Aggressive Hybrid Funds

A study by DSP Mutual Fund shows that over 23 years, aggressive hybrid funds delivered an average return of 12.9%. This is comparable to the Nifty Total Returns Index (TRI), which delivered 13.8% over the same period.

Aggressive hybrid funds had a standard deviation of 7.2%, compared to 11.8% for equity funds.
Do not incur any capital gains tax during the rebalance of equity and debt, providing better post-tax returns.