Hybrid Mutual Funds

Mutual Fund Disributors in Mumbai

Planning to invest in mutual funds? Let Fund Pinnacle make the journey easy for you

Mutual funds are an investment vehicle where people invest their money, which is further invested by a team of professional money managers in different investment products – stocks, bonds, for instance. MFs help investors diversify their portfolios and manage their funds more professionally.

Why need help of

Mutual fund consultant in Mumbai

Small investors can invest in Mutual Funds on their own without any significant advantages or disadvantages. But taking the help of professional mutual fund agents in Mumbai can help them invest on a surer and more confident footing. They can also benefit from the expertise and experiences of professional investment service providers.
Mutual Funds are an ideal investment option for those who low risk appetite. Mutual funds are basically of three types:

  • Equity mutual funds

  • Debt mutual funds

  • Hybrid mutual funds

Why invest in mutual funds?

The reasons why an investor should buy mutual funds in place of stocks are many but diversification of investment portfolio, ease, and lower costs are significant ones. Actively managed funds need a portfolio manager who regularly updates their holdings, while a not-so-actively managed fund's portfolio relies on a buy-hold-sell strategy.

Hybrid Funds
Hybrid funds come in all shapes and sizes and are categorised into Equity Fund, Balanced Advantage Fund, Aggressive Hybrid Fund, and Conservative Hybrid Fund.
Hybrid funds are also classified on the percentage allocated to equity which might vary from 20% to 80%. All these details may confuse the investors. Here comes in the picture professional Mutual fund distributors in Mumbai who can provide you with well-thought and prudent advice.

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Let us now discuss hybrid mutual funds in detail.

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They invest in across asset classes

Hybrid funds work on the principle of asset allocation. Simply speaking, these funds invest in a combination of asset classes like equity, debt, gold, and even international ETFs. This allows investors to reap the benefits of any upside on account of the equity exposure and protect the downside by parking some portion of the surplus into debt instruments as well.

How investments in different assets help

The different assets often have a negative correlation which not just helps with portfolio diversification but also improves the risk-reward ratio. Here’s why?

Asset classes go through cycles and often a different asset class emerges on top of the performance chart. For instance, in 2015, the BSE Sensex posted a return of negative 5% while debt returned positive 8.5%. But in 2017, the same BSE Sensex recorded a positive return of 28% while the debt index could only manage a return of 6%. This highs and lows cycle often continues across asset classes almost every year.

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Confusing? Take help of Mutual fund distributors in Thane

Such complexities and handpicking of asset classes can be a tough task for individual investors as most of them neither have the knowledge nor the time to manage the investments efficiently, especially in a financial hub like Mumbai. Mutual fund distributors in Mumbai and Thane can provide the investors with beneficial bits of advice.

Categories of Hybrid Funds
There are three main hybrid funds – conservative, balanced, and hybrid

Conservative hybrid fund

  • It’s the most cautious of all hybrid funds
  • Investment skewed towards debt instruments
  • Equity allocation is 10-25%
  • Debt allocation is 75-90%
  • Prioritizes safety of capital

Aggressive hybrid fund

  • These are among the most popular categories in the hybrid space
  • Oover Rs one lakh crore in assets under management (AUM)
  • Equity allocation is up to a high 65-80%
  • Suitable for investors with an aggressive risk profile
  • Time horizon of more than 5years

Balanced hybrid fund

  • Invests 40-60% of its assets in equities and the rest in debt
  • Suitable for investors with a moderate risk profile

During and after the COVID-19 induced lockdown, a large number of Demat accounts were opened and first-time investors rushed to buy shares without understanding much of what they were up to. Lack of knowledge and discipline is bad in investment. Therefore, investors should seek professional advice from mutual fund distributors in Thane.

Mutual Fund Disributors in Mumbai


Tax on gains made from the equity component of hybrid funds is similar to that on equity funds. Rate of tax on long-term capital gains over Rs. 1 lakh on equity component is 10% whereas short-term capital gains (STCG) on equity component face a rate of 15%. Your mutual fund distributors in Mumbai can provide more clarity on these issues. 

Why Choose Fund Pinnacle?

Fund Pinnacle provides its clients with a smooth and hassle-free investment experience. Its services start by letting clients know the options and continue to provide their expert guidance throughout the investment journey.
Fund Pinnacle strives to work for the specific needs of the clients depending on the capital they have, desired lock-in period, and risk appetite.
Fund Pinnacle regularly stays in contact with its clients to keep them aware of the latest market changes. Advisory services from the top mutual fund distributor in Mumbai might prove to be the talisman you have been yearning for to transform your capital into wealth.

Hybrid Mutual Funds

In Conclusion

Investors should look into the different categories of hybrid funds on the basis of their risk profile, investible wealth, lock-in period, and a few other parameters. Consulting a mutual fund distributor in Thane or Mumbai would be a wiser decision as hybrid funds also contain an element of risk associated with equity funds. Hybrid funds do an excellent job and are a balancing act. It can prove to be a vital addition to your investment portfolio, especially if you are new to investing and generally conservative or moderate in your risk outlook.


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