Aggressive Mutual Funds are the funds that invest in equity or equity related funds. These hybrid funds invest about 65 to 80% in equity funds and remaining 20 to 35% in debt securities and other money market instruments. Aggressive hybrid Funds offers higher returns and have the facility to take up the opportunity of arbitrage funds that is purchasing the security from the lower market and selling at higher price market to gain good profits. These funds follow the hybrid portfolio like providing regular income and higher returns at the long-term investments. These funds offer provide higher returns than the balanced funds comparatively. Also, these hybrid funds allow the fund manager to select the stocks. And when we consider about the risks associated such funds, risks depend on the selection of the small or mid cap stocks, so to not get trapped into risks it is recommended to analyze the portfolio of the scheme.
Points to be considered before investing
When it comes to invest in any type of mutual funds it always comes with minor or major risks, so one must take a wise choice and has to inquire about the portfolio to avoid any risks.
Returns are based on the type of selection of stocks, like small cap or mid cap or low-quality debt securities, etc.
Aggressive funds charge the service management fees known as expense ratio, explore the schemes that comes with lower expense fee. Always check for the lower expense fee because the higher expense fee will lower your profits.
Based on the invested amount and the tine duration the respective tax is Applicable. If the invested amount is more than 1 lakh rupees, then long term capital gain tax is applicable without tax indexation if the invested amount is less than 1 lakh then short-term capital gain tax is applied.
Top Hybrid Funds or Aggressive Funds in India:
- Quant Absolute Fund offers 13.9% return for 3 years.
- BNP Paribas Substantial Equity Hybrid Fund offers 12.54% returns for 3 years.
- Canara Robeco Equity Debt Allocation Fund offers 12.02% for 3 years.
- Mirae Asset Hybrid Equity Fund offers 10.27% returns for 3 years.