Low risk appetite only sees hunger for hybrids growing, shows data

MFs expect hybrid funds to become investor favourites

Fund houses are exploring ways to differentiate themselves in the hybrid space. A relatively unknown hybrid fund variant, Balanced Hybrid, is about to see its first launch since the introduction of mutual fund (MF) scheme categorisation norms in 2017.

WhiteOak Capital MF has filed papers with the regulator for this scheme, which comes amid increasing interest in the hybrid space.

MFs anticipate that hybrids will become the preferred category for investors with a lower risk appetite following changes in debt fund taxation.

Balanced hybrid funds (BHFs) differ from balanced advantage funds (BAFs) in terms of their flexibility for fund managers