Why invest in Hybrid Mutual Fund Schemes? Diversified Investment option for balance between potential growth and relative stability

Tata Mutual Fund offers a range of open-ended hybrid schemes that combine equity and debt in different proportions. You can start investing with as little as ₹100 through SIP or ₹5,000 as a lump sum. For your reference, below are some hybrid mutual fund schemes:

An Open-Ended Hybrid Scheme Investing Predominantly In Equity & Equity-Related Instruments.

Tata Aggressive Hybrid Fund (earlier known as Tata Hybrid Equity Fund) invests primarily in equities with some allocation to debt. The equity portion of this scheme can focus on high-quality companies with:

• Strong growth potential
• Healthy financials
• Competitive market positions

On the other hand, the debt portion can hold investment-grade securities for relative stability. The fund managers of this aggressive hybrid fund avoid highly cyclical or commodity-driven sectors. Also, they can follow a buy-and-hold strategy to capture long-term value.

Alternatively, you can also choose the other variant, Tata Aggressive Hybrid Fund Regular Growth, which has similar characteristics and features but is Regular plan (application routed through distributor). 

Tata Aggressive Hybrid Fund
An open-ended hybrid scheme investing predominantly in equity & equity related instruments
This product is suitable for investors who are seeking*:
Long Term Capital Appreciation.
Investment predominantly in equity & equity related instruments (65% - 80%) & some portion (between 20% to 35%) in fixed income instruments.
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.	Scheme Risk-O-Meter	Benchmark Risk-O-Meter

An Open-Ended Scheme Investing In Equity, Arbitrage, and Debt.

Tata Equity Savings Fund can invest across equity, arbitrage, and debt. It tries to achieve long-term capital appreciation(equity) and earn regular income (debt & arbitrage). This can be done by combining equity investments with arbitrage opportunities and high-quality debt. 

Equity exposure can be mainly in large and established companies, whereas the debt portion can focus on short- to medium-term securities. On the other hand, arbitrage ensures high liquidity and lower risk. 

This hybrid mutual fund plan can suit investors who want a diversified mix of potential growth, income, and risk management in one scheme.

An Open-Ended Scheme Investing in Arbitrage Opportunities

Tata Arbitrage Fund invests in equity but fully hedges positions by using futures (which can make it low risk). This scheme can try to earn returns from price differences between cash and futures markets or within derivatives. At the same time, it also enjoys equity taxation benefits. 

Since the portfolio is hedged, this hybrid fund can focus on generating regular income with lower volatility. It can be suitable for investors looking for short-term parking of funds.

An Open-Ended Dynamic Asset Allocation Fund

Tata Balanced Advantage Fund is a hybrid scheme that can invest in equity, debt, and arbitrage. It can try to create a balance between potential growth and relative stability by changing the mix of investments based on market conditions. 

In this scheme, equity allocations can be guided by valuation measures like P/E ratios. Also, this allocation can be timely adjusted as per:

• Global market trends
• Market momentum
• Volatility

Such an approach can offer potential growth, regular income, and downside protection.

Hybrid mutual funds invest in both equity and debt. On a high level, if the fund invests more in equities (an aggressive hybrid mutual fund), it can be suitable for investors who want potential growth but also some relative stability. Whereas, if it invests more in debt (conservative hybrid fund), it can be suitable for investors who prefer relative stability but are open to limited equity exposure to earn potential returns. 

In this space, Tata Mutual Fund offers multiple choices like Tata Aggressive Hybrid Fund, Tata Equity Savings Fund, Tata Arbitrage Fund, and Tata Balanced Advantage Fund. These schemes provide different mixes of potential growth, income, and risk management.

For more information, you can visit www.tatamutualfund.com. The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are Monday to Friday, 9:00 AM to 5:30 PM, and Monday to Saturday, 9:00 AM to 5:30 PM. For assistance, you can also call (022) 6282 7777 or email service@tataamc.com.