Investors Flock to Hybrid Funds Amid Volatility for Growth & Protection

• Hybrid mutual funds attract investors by offering market-linked returns with downside protection through diversified asset allocation.
• These funds spread investments across equity, debt, and other assets like commodities or precious metals to manage volatility.
• Kirtan Shah highlights categories like Conservative (10-25% equity), Balanced (40-60% equity), and Aggressive (65-80% equity) based on allocation.
• Balanced Advantage and Multi-asset funds dynamically adjust allocations or invest across at least three asset classes, including precious metals.
• Nisreen Mamaji notes hybrid funds cushion portfolios during corrections and aggressive hybrids can match large-cap returns with lower volatility.

Why It Matters: Hybrid funds offer a balanced investment strategy, combining growth potential with reduced risk in volatile markets.