Hybrid Funds – Why invest in them?

POSTED BY vatsengr ON October 30, 2013 9:20 am COMMENTS (3)

Could someone help me understand the Hybrid Funds and different types of Hybrid funds (Asset Allocation, Equity Oriented etc).

Is it same as Balanced Funds? What is the thought process behind investing in them (specially the fund of funds)? Which type with in Hybrid Fund types is fit for what purpose?

All I understand is that Hybrid funds are mix of equity and debt and change their allocation based on market condition, and investing in fund of funds is not a good idea as you pay double expense.

3 replies on this article “Hybrid Funds – Why invest in them?”

  1. hemanthchandra62 says:

    Also, for FoF, the effective recurring charges will be more compared to a normal fund,because there will be recurring charges charged by the basic fund and also the fund in which the baisc fund invested.

    Please correct me if I am wrong.

  2. vatsengr says:

    Came across this
    http://www.indianexpress.com/news/investing-in-fund-of-funds/897338/

    but I am still not sure about why should anyone invest in a FoF instead of a regular Balanced fund which as I understand provides all the benefit mentioned in the article.

  3. Sumit says:

    Well like Balanced Funds , Hybrid Funds are also invests in more than one asset class – stocks, bonds or cash. But it can also invest in gold as well.

    Thanks
    Sumit

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