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[ Tue, Dec 03rd 2024 ]: Thomas Matters
November Market Review

Will 2025 belong to multi-cap, hybrid funds?

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Diversified and hybrid funds have generally given a much better risk-adjusted return in economic downturns or during market corrections.
The article from Livemint discusses the introduction of multicap hybrid funds, which are set to launch in 2025. These funds will invest in a mix of equity, debt, and commodities, aiming to provide a balanced investment approach. The Securities and Exchange Board of India (SEBI) has outlined that these funds must allocate 65-80% in equities, 10-25% in debt, and up to 10% in commodities like gold and silver. This new category is designed to offer investors a diversified portfolio, reducing risk through asset allocation across different investment classes. The article highlights that these funds could be particularly beneficial for investors looking for a one-stop solution for diversification, potentially offering stability during market volatility. It also mentions that while these funds might not outperform pure equity funds in bull markets, they could provide better risk-adjusted returns over the long term due to their balanced nature.

Read the Full Mint Article at:
[ https://www.livemint.com/market/stock-market-news/multicap-hybrid-funds-2025-11733154417247.html ]