Mutual fund
If you are investors who are new in investment, want to avoid risk, and invest in equity and date asset class, then you can consider an aggressive hybrid fund. Under this, any investor can start monthly SIP to invest in a phased manner. At the same time, SIP can increase the amount of 8-10% every year through SIP top-up. Such an approach can own a large fund in the next 15 to 20 years.
An aggressive hybrid fund invests in 65–80% equity and the rest of the date. Given this structure, the return may be slightly lower than the equity fund, but it should be remembered that the risk associated with the fund is also low. This characteristic becomes quite important during the uplifting slap in the market, as the decline in the portfolio value will be relatively low, which would improve the experience of the investor.
So it is better option at low risk
The equity part of the fund gives extraordinary returns in the rapidly growing market, while the date acts as a cushion at the time of the market declining, protecting the downside of the portfolio. When the economy cuts interest rates, this date part of the portfolio also gives extraordinary returns. Adding aggressive hybrid funds to the portfolio provides relief of both equity and date and also provides possible benefits in both asset classes. Therefore, investors must include at least one aggressive hybrid fund in their portfolio. There is an option in this category, ICICI Prudential Equity and Date Fund, established in November 1999. The fund has a 25 -year -old track record of 25 years and its AUM is Rs 39,886 crore. Apart from this, Canara Robico Equity Hybrid Fund – Direct Plan -Goth, Mirae Asset Agressive Hybrid Fund – Growth, SBI Equity Hybrid Fund – Direct Plan – Growth, DSP Agressive Hybrid Fund – Direct Plan – Direct Plan – Growth etc.
Confluence of investment in equity and date
Its asset under management is 74.6% in property (AUM) equity. The rest is in date. 21.33% in fixed income instruments, 2.5% in real estate date and 1.5% in cash. From the beginning, the fund has given a CAGR of 15%. 25% of the corpus has been invested in date, this return is a major achievement. If an investor would have invested Rs 10,000 every month in this fund, then in the last 25 years, his investment of Rs 30 lakh would have been Rs 3 crore in the last 25 years, ie 10 times the increase.
Less drop in market gathering
In a period of 10 years, ICICI Prudential Equity and Date Fund has given a compound interest at the rate of 13.84%. The fund has recorded a decline of 4.1% compared to a 9% decline of the index. That is, during the correction in the market, the fund has succeeded in providing protection from the decline. ICICI Prudential Equity and Equity of Date Fund include 93 stocks. The top 10 holdings represent 43% of the portfolio, most of which are Nifty 50 index stocks. The date consists of large -scale sovereign bonds.
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