With boom in equity markets, aggressive hybrid funds gain currency

Over the past year, the aggressive hybrid category has given average returns of 41%

With Indian equities at record highs and concerns around pricey valuations, some investors are seeking refuge in so-called “aggressive hybrid” funds. Experts say such funds can help cushion the downside if the market corrects. In July, the category received net inflows for the first time in 2021.

Before 2017, the aggressive hybrid category was much-favoured among investors as it posed less risk than pure equity funds and provided far higher returns than debt schemes. Later, such hybrid funds went out of fashion as equity returns plateaued.

With the boom in the equity markets now, the category is back in demand, say industry