Deciphering Balanced or Hybrid Funds

What are balanced/hybrid funds in mutual funds?

Balanced or Hybrid Funds aim to strike a balance between growth and income. They invest in both equity and fixed-income securities, trying to capture the growth potential of equities while also offering the stability of fixed-income instruments. As a result, they are designed to provide moderate growth with a reduced risk profile. Such funds are ideal for investors seeking a blend of capital appreciation and income generation without being overly exposed to the volatility of pure equity funds.

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