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Time of India
3 days ago
- Business
- Time of India
Best aggressive hybrid mutual funds to invest in August 2025
Live Events Mixed portfolio Aggressive hybrid schemes to invest in August 2025: SBI Equity Hybrid Fund Canara Robeco Equity Hybrid Fund Mirae Asset Hybrid Equity Fund ICICI Prudential Equity and Debt Fund Quant Absolute Fund You might have heard from your favorite mutual fund manager or experts that hybrid funds are likely to show their resilience in the coming year. Hybrid mutual funds or schemes that invest mostly in equity and debt fare better in an uncertain or volatile environment. Mutual fund experts believe that the markets are likely to be cautious and investors should also proceed with hybrid funds are one of the popular hybrid mutual fund categories. These schemes are mandated to invest in a mix of equity (or stocks) and debt. As per Sebi norms, these schemes must invest 65-80% in stocks, and 20-35% in debt. This mixed portfolio helps to deal with the market volatility better. When the equity market is in turmoil, the debt part of the portfolio softens the blow. This helps new investors to continue with their investments without worrying too much about you are bothered about the uncertainties and volatility in the market, you can consider investing in aggressive hybrid mutual funds . Mutual fund advisors typically recommend aggressive hybrid fund schemes to 'conservative' equity investors to create wealth to achieve their long-term financial goals.A 'conservative equity investor' is not the same as a conservative investor. A conservative investor doesn't want to take risks at all. These investors typically park their money in bank deposits, bonds, etc which give them predictable returns. A conservative equity investor is ready to take risk, but he or she doesn't want too much risk and volatility. So, a conservative equity investor typically wants to grow wealth without exposing her investments to too much advantage of investing in these schemes is their mixed portfolio of equity and debt. In order to maintain the asset allocation, the fund manager would constantly book profits, and this will boost the returns. Suppose the equity allocation has gone beyond the original plan in a bull market. The fund manager would sell the stocks to maintain the allocation. This profit-booking, over a long period of time, would enhance the you can do such an allocation and create your own mutual fund portfolio. However, when you book profits, you may have to pay taxes on gains of over Rs 1 lakh in a financial year. A mutual fund, on the other hand, is not liable to pay taxes. This again would help investors to enhance their that you know about these schemes, here are the points you should remember before deciding to invest in aggressive hybrid funds. One, the mixed portfolio of these schemes helps you to limit volatility and create wealth over a long period. Two, regular profits booking would help these schemes to boost profits. Three, they offer a tax advantage. Lastly, don't rely on regular dividends from these schemes to draw up a regular you should always remember none of these factors make aggressive hybrid schemes risk free. Any scheme that invests a minimum 65% in stocks, can't be risk free. Stocks are risky. So, you should be prepared for some volatility in the short is an update: SBI Equity Hybrid Fund has been in the third quartile in the last seven months. The scheme had been in the fourth quartile earlier. Mirae Asset Hybrid Equity Fund has been in the third quartile in the last four months. The scheme had been in the fourth quartile before that. Canara Robeco Equity Hybrid Fund has been in the third quartile for the last 27 months. Note, these schemes have been part of our recommendation list in 2024, too. We have been closely watching these schemes. Please follow our monthly updates if you are investing in these you want to invest in these schemes, you may be interested to know how we chose these schemes. Take a look at our methodology:ETMutualFunds has employed the following parameters for shortlisting the hybrid mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of the randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. These types of time series are difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Hybrid funds, the threshold asset size is Rs 50 crore
Time of India
03-07-2025
- Business
- Time of India
Top 10 mutual funds to invest in July 2025
Many new and relatively-inexperienced investors always look for top mutual funds to invest in. They ask their friends or colleagues or in some mutual fund forums for top or best schemes while starting their investment journey or while deciding to invest extra money. But most of them are not satisfied with the answers they get from the internet or friends due to different reasons. An online search would mostly take you to some websites with ready-made lists. Most often, the schemes may be shortlisted on the basis of their short-term performance. Sometimes, the schemes from a single category may dominate the list because that category happens to be the flavour of the season. Also Read | Defence sector based MFs rally up to 60% in 3 months. Will the momentum continue? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Indonesia: Unsold Sofas at Bargain Prices (View Current Prices) Sofas | Search Ads Search Now Undo Friends or colleagues may give you names of schemes they like or they are investing. Again, there is no guarantee the schemes are indeed suitable for you. Some people never proceed beyond collecting names of top funds because a lingering doubt about the veracity of the names always holds them back. No wonder, many investors keep visiting mutual fund forums for validation for years - even after they start investing. Live Events That is why ETMutualFunds decided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different equity mutual fund categories - aggressive hybrid, large cap, mid cap, small cap and flexi cap schemes – which we believe should be enough for regular mutual fund investors. There are caveats: read till the end to ensure you are picking up the best scheme for you. Also Read | Confused about investment in stocks, gold & silver? Simplify it with multi-asset mutual funds! List of top 10 schemes: Canara Robeco Bluechip Equity Fund Mirae Asset Large Cap Fund Parag Parikh Flexi Cap Fund HDFC Flexi Cap Fund Axis Midcap Fund Kotak Emerging Equity Fund Axis Small Cap Fund SBI Small Cap Fund SBI Equity Hybrid Fund Mirae Asset Hybrid Equity Fund Here are some pointers you should keep in mind while investing in these schemes. First, find out about each category and whether it is suited to your investment objective and risk profile. Aggressive hybrid funds Aggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80%) and debt (20-35). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much volatility. Large cap funds Some equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability. Flexi cap funds A regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond flexi cap mutual funds (or diversified equity schemes). These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes. Small cap, mid cap funds What about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk. Finally, any search starting with the word 'best' or 'top' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile. If you do not understand the basic mutual fund concepts or are totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor. If you are looking for our recommendations in various mutual fund category, see: Best mutual funds to invest Methodology for hybrid funds: 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5, the series is said to be mean reverting. iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore Methodology for equity funds: ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H is less than 0.5, the series is said to be mean reverting. iii) When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore.
