. Hybrid Funds
Hybrid funds are also known as balanced funds. They are investing in both equity and debt instruments with the objective of achieving a balance between risk and return. Hybrid funds can be very attractive for people who seek moderate growth with some cushion against the market volatility due to its diversified nature.
The two major categories of hybrid funds are:
Aggressive Hybrid Funds- Funds invest a size between 65 percent and 80 percent of assets in equities while keeping the rest as debt, hence bringing down the potential for upside risk.