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Hybrid Fund: What are hybrid funds, who should invest and what are the benefits, know

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Hybrid Fund: What are hybrid funds, who should invest and what are the benefits, know

Hybrid Funds: When many people go to eat together. So whether eating in office or college canteen or in a restaurant, people often prefer to take combo meal. This also makes it easier for them to finalize food quickly and this confusion about what to eat also goes away. Similar is the hybrid fund. This is also a combo of two types of investment funds. With this, people invest in two types of funds simultaneously.

Scheme in Hybrid Fund

In hybrid fund, the investor puts funds in two types of schemes simultaneously. In which schemes like Equity Fund, Debt Fund, Liquid Fund, Gold Fund are included. Similarly, any two types of funds are invested in hybrid funds by taking them together.

Equity more, debt less

In this type of hybrid fund, the percentage of equity is higher than that of debt. It depends on the investor that in which fund he wants to invest more.

more debt, less equity

In this type of hybrid fund, the percentage of debt funds is high and that of equity funds is less. Investing in two such types of funds together will be called hybrid funds.

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balanced fund

Hybrid funds are also called balanced funds. In this, the investor invests in two or more schemes and earns profit from those funds.

Hybrid Fund Advantages

The specialty of hybrid funds is that the money of the fund is invested in debt assets along with equity. Due to investment in different classes, investing in it gives the benefit of diversification. Sometimes the fund money is also invested in gold. Suppose if the money invested in equity decreases or worsens according to the market environment, then the fund balance is done through the money invested in debt and gold.

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