Investment reduced in equity! Where people are putting money to avoid market risk

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Investment Tips: AMFi showed in the recently released data that the trend of investors is now decreasing towards equity funds. Equity fund, which has once been a favorite of everyone because of the most returns, is now causing disappointment …Read more

Hybrid mutual funds have also given good returns in market instability.

Highlights

  • Investors are getting attracted towards hybrid mutual funds.
  • Hybrid Fund of Nippon India has given the best return.
  • Hybrid funds are better options in market uncertainty.

New Delhi. Despite the gradual improvement in the stock market, investors are getting attracted towards hybrid mutual funds due to the recent instability in equity markets and record height in gold. The data from the Association of Mutual Funds in India (AMFI) suggests that investors’ interest in Hybrid Mutual Fund in April increased. This category made a net investment of Rs 14,247.55 crore, while in March there was a net withdrawal of Rs 946.56 crore.

Market experts attribute the increase in the market more uncertain conditions for the increase in hybrid mutual funds. The Russian-Ukraine struggle continues to indicate more rapid signs and the market is increasing the risk due to ambiguity about tariffs by the US administration. These factors will also have an impact on market investment and returns, which create psychological fear among investors and they exit the markets.

Why are hybrid funds better

Hybrid fund proves to be a good investment option amidst the ongoing ups and downs in the market. The reason for this is that hybrid mutual funds invest in combination with other asset classes like equity, date, gold and real estate. The investment between these assets varies depending on the type of hybrid fund. Since, hybrid funds mix two or more asset classes into a portfolio, they try to capitalize on growth opportunities, reducing the impact of market reforms.

Which hybrid fund performs better performance
If we look at the recent performance of hybrid funds, the reason for investors’ interest is clear. Nippon India is at the forefront of giving hybrid funds of Mutual Fund. Its Balanced Advantage Fund has given 13.55% returns in the last three years, while Nippon India Multi Asset Allocation Fund has given 17.99% returns in the same period. This fund also invests in commodity like gold and silver. Kotak Mutual Fund, ICICI Prudential and Hybrid Fund of SBI Mutual Fund have also given more than ten percent returns during the same period. Since these funds also invest in gold, the recent increase in gold prices has also helped in the performance of hybrid mutual funds.

How to handle yourself hybrid fund
Hybrid funds adjust their equity and date exposure based on valuations and other market indicators. Experts believe that this dynamic approach helps reduce negative risk. This is the reason that investors prioritize hybrid funds. Hybrid funds are a good investment option, as they serve as an all-visitor option for all categories of investors.

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Pramod Kumar Tiwari

Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist …Read more

Pramod Kumar Tiwari likes to cover the stock market, investment tips, tax and personal finance. Explains complex subjects very easily. In newspapers, dozens of columns have also been written on personal finance. Journalist … Read more

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Investment reduced in equity! Where people are putting money to avoid risk

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