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For high equity exposure, investors should select aggressive hybrid funds

Choose separate equity and debt funds for greater control over asset allocation

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Investors who have decided on a strategic asset allocation and have the ability to rebalance should buy separate equity, fixed-income, and gold-based instruments

Sanjay Kumar Singh New Delhi
Hybrid funds of the type that take relatively high exposure to equities have produced attractive returns over the past year. However, when selecting a sub-category within hybrid funds (of which there are six), do not be guided by past-year returns only. Understand the invest­ment mandate of the sub-category first.  

Most asset classes did well in 2020. Large-caps fared well (the Sensex’s one-year return is 14.5 per cent; BSE Midcap’s is 19.3 per cent, and the Smallcap’s is 32.6 per cent). On the debt side, longer-duration debt has performed well. Gold has given 27.6 per cent returns.

Investment mandate: Aggressive hybrid

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First Published: Dec 30 2020 | 6:10 AM IST

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