Latest news with #HybridFund
Economic Times
13 hours ago
- Business
- Economic Times
Best conservative hybrid mutual funds to invest in June 2025
iStock Conservative hybrid mutual funds invest mostly in debt and a small percent in equity. Many mutual fund advisors believe that 2025 is going to be the year of hybrid funds. Because of the uncertainties regarding the global economy and ever rising Indian stock market, advisors have been advising investors to move cautiously. In such a scenario they believe that investing in hybrid mutual funds - schemes that invest in equity and debt - may serve investors, especially new and inexperienced investors, hybrid mutual funds are the entry to the world of hybrid funds. These schemes invest mostly in debt and a small percent in equity. As per the Sebi norms, conservative hybrid schemes must invest 75-90% in debt instruments and 10-25% in stocks. These schemes are ideal for investors looking to invest a small part of their corpus in equity to earn some extra returns. Also Read | ITC and Cochin Shipyard among stocks that Quant Mid Cap Fund bought and sold in May Conservative hybrid schemes, as the name suggests, are meant for investors with a conservative risk schemes are similar to erstwhile monthly income plans or MIPs. MIPs were extremely popular at one point. They used to invest a small part of their portfolio in stocks. But their USP, as the name suggests, was regular income in the form of dividends. However, regular dividends stopped when the market got into a bad phase. That was the end of MIPs. The lesson: do not bank on hybrid funds to secure a regular income. If you are looking for regular income, it is always better to opt for a systematic withdrawal plan or SWP. However, be careful about how much you withdraw if you don't want to touch your capital. Always withdraw less than what you make if you want to preserve your you want a ready-made scheme that would help you to take a small exposure to equity, here are our recommended conservative hybrid schemes. However, you should always remember, especially if you are investing in stocks for the first time, that stocks are risky. Stocks do not offer predictable or assured returns year after year. They can also lose money during a downturn. In short, it is the risk you are taking when you are investing in stocks, even if it is a maximum 25% of your Read | Eternal and Vedanta among stocks which Edelweiss Mutual Fund bought and sold in May Canara Robeco Conservative Hybrid Fund has been in the third quartile in the last two months. The scheme had been in the fourth quartile earlier. Note, the scheme has been part of our recommended funds in the last year, too. You don't have to worry about short-term underperformance. We closely watch the performance of these schemes and update you about it every month. Please follow monthly updates if you are investing in these schemes. Here's our methodology:ETMutualFunds has employed the following parameters for shortlisting the Hybrid mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. These types of time series are difficult to forecast. ii) When H <0.5,>iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore. (Disclaimer: past performance is no guarantee for future performance.) 0.5,>
Mint
11-06-2025
- Business
- Mint
Best mutual funds: THESE 8 aggressive hybrid funds gave over 20% annualised return in the past 3 years
Best mutual funds: At the time of investing in a mutual fund scheme, it is vital to first monitor the returns delivered by that scheme and compare the same with other schemes in the same category. This gives an indication of how the scheme could perform in future. It is noteworthy that there are other factors which play a role in assessing the worth of a mutual fund. These include past performance of fund manager (in case of active funds), reputation of fund house and the category of scheme. Here, we list out the past three year returns of aggressive hybrid mutual funds. Those who are not aware of aggressive hybrid funds refer to the schemes which invest anywhere between 65 to 80 percent of their assets in equity and equity-related instruments. The remaining 20 to 35 percent of assets are invested in debt instruments Aggressive hybrid fund 3-year-return AUM ( ₹ crore) BOI Mid and small cap equity and debt fund 23.22 1,235.92 ICICI Prudential equity and debt fund 20.87 43,797 JM Aggressive Hybrid Fund 23.94 840 DSP Aggressive Hybrid Fund 19.24 11,248 Edelweiss Aggressive Hybrid Fund 19.70 2,815 Invesco India Aggressive Hybrid Fund 19.40 719 Mahindra Manulife AHF 19.36 1,739 UTI Aggressive Hybrid Fund 19.17 6,366.80 (Source: AMFI; Returns as on June 9, 2025) As the table above shows, JM Aggressive Hybrid Fund delivered 23.94 percent return in the past three years, Bank of India mid and small cap equity and debt fund gave 23.22 percent return. Other schemes which have delivered over 20 percent annualised return in the past three years are ICICI Prudential equity and debt fund and JM Aggressive Hybrid Fund. Based on the size of the fund, the largest schemes are ICICI Prudential equity and debt fund (asset size of ₹ 43,797 crore) and DSP Aggressive Hybrid Fund (with asset size of ₹ 11,248 crore). Notably, historical returns do not guarantee future returns. To put it simply—just because a scheme has delivered exceptional returns into the past, it does not mean it will continue to perform at the same pace in the future as well. Therefore, investors are recommended to view a scheme holistically and judge various factors including the past returns. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. For all personal finance updates, visit here.
