Future value of investments
33,49,85,214
Total investment made
10,00,00,000
Your investment has grown to
23,49,85,214
Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel
Hybrid mutual funds allow you to invest in a combination of debt and equity. These are also called balanced funds.
You have:
Equity Hybrid: In an equity hybrid fund, at least 65% of the corpus is invested in equities and the rest in debt. To be called an equity fund, at least 65% of the fund needs to be invested in equity. The remaining corpus is invested in debt up to a maximum of 35%.
Debt Hybrid: In a debt hybrid fund, at least 75% of the corpus is invested in debt and the rest in equities.
Hybrid funds have an exposure to debt. This protects your investment when stock markets are volatile or crash.
When stock markets rise, or there is a bull run, the hybrid funds give better returns than debt funds.
With an exposure to both equity and debt the hybrid fund is naturally diversified. You don't have the headache of balancing the portfolio.
Equity hybrid funds are treated as equity, for tax purposes. Long term capital gains are tax exempt, just like equity.
This debt oriented fund is close ended and has 80% in debt and 20% in equity. The huge proportion of debt ensures capital protection, as it is close ended in nature and the equity component helps in gaining decent returns in the stock markets. These funds cannot use the word "guaranteed" or "capital protection" .They can only be called as capital protection oriented. These funds purchase "AAA" rated debt or debt of very high quality, which helps the principal amounts grow over a fixed tenure. This protects the capital and the equity component generates returns, far in excess of its proportion, by investing in the options and futures market.
These are basically debt oriented mutual funds which invest 75-80% of the corpus in debt and the rest in equity. These funds can be further divided into a monthly income plan with a dividend option and one with a growth option.
The dividend option helps to generate income in the form of dividends, which are tax free in the hands of the investors
In the growth option no dividend is paid .The amounts are reinvested in the fund itself. This increases the value of the fund and huge returns are obtained on liquidation of these funds.
If the MIP is sold for a profit within a year, it is called a short term capital gain. These amounts are added to your income and taxed as per the income tax slab you fall under. Long term capital gains beyond a year, are taxed at 20% with indexation benefits.
Equity hybrids are taxed just like an equity mutual fund. If the equity hybrid is sold under a year, the short term capital gains are taxed at 15%.. If the equity hybrid is sold after a year there is no tax.
Debt hybrids are taxed just like a debt fund. Short term capital gains (gains under 3 years), are added to your taxable salary. Taxed as per income tax slab you fall under. Long term capital gains (gains over 3 years), are taxed at 20% with indexation.
Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel
Hybrid Mutual Funds are characterized by portfolio that is made up of a mix of stocks (equity) and bonds (debt). The mix and percentage can vary over time in reaction to the market conditions as perceived by the fund manager, or the mix could remain fixed.
The purpose of Hybrid Mutual Funds is to provide a balanced portfolio proving both growth and security to the investor's investments.
Balanced funds are a good starting point for most first-time investors because of the pre-defined equity-debt mix
To be absolutely sure of WHAT TO LOOK OUT, talk to IndianMoney.com on the phone for FREE financial consultation.
Expert Financial Advisors from IndianMoney.com would provide you unbiased, correct and up to date information so that you can make an informed financial decision.
Equity funds are those which invest primarily in stocks. Within equity funds, the structure of a particular fund may differ from that of another. Equity funds include diversified funds, market capitalization based funds, sector specific funds, theme based funds and tax saving funds. Equity funds are generally aimed at providing comparatively high returns within the mutual finds family, but with a relatively higher degree of risk.
Investors get returns on their investments in two ways - dividend and capital gains. The former depends on earning levels of the particular company and the decision of its management. The latter arises happens when the market price of the shares rises above the level at which the investment was made.
Investing in equities/shares offers many benefits over other asset classes like a high level of liquidity which unlike property, gives you ready access to your money. There are more than 6000 companies listed on the stock market in which you can buy shares so there are plenty to choose from to match your investment needs.
Investing in mutual funds is a great option if you want to earn handsome returns. If you are planning to invest in mutual funds, you should start as early as possible. Investing in ....
Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a ....
Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase ....
@media screen and (max-width: 480px) {.rel-art h3 {font-size:16px; font-weight:bold;}}.nor-tab {width:100% !important; max-width: 900px !important;} .nor-tab td, th {padding: 10px !important; border: ....
RBI was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.The Central Office of the Reserve Bank was originally established in Calcutta but later ....
A Credit Union is a cooperative financial institution that is owned and controlled by its members. Credit unions differ from other financial institutions (banks, savings and loan). In this the membe ....
There are some of the following possible impacts of Mutual funds participants will be on Derivatives and Cash segment. 1. Introduction of structured product regime. As on nowadays the mutual funds ....
It is nothing but class of financial intermediary that hires professional investment managers to oversee aspects of a client's investment fund. More particularly, the MOM tracks the performance of eac ....
The person or persons responsible for investing a mutual, exchange-traded or closed-end fund's assets, implementing its investment approach and managing the day-to-day portfolio trading. The portfol ....
Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel
26 December 2017, Tuesday
Investing in mutual funds is a great option if you want to earn handsome returns. If you are planning to invest in mutual funds, you should start as early as possible. Investing in mutual funds at a young age will give you the advantage of staying invested for long periods of tim...
18 November 2014, Tuesday
Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you understand the investment, ...
18 November 2014, Tuesday
Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even...
18 July 2012, Wednesday
Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...
14 March 2014, Friday
As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...
07 January 2014, Tuesday
One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...
Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel
