Hybrid Mutual Fund : which give you high returns at moderate risk

Quant absolute fund – Direct Growth
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Hybrid Mutual Fund mainly invests in two assets, one in equity and the other in debt. If there is some ups and downs in equity and there is some decrease in your invested amount, then at that time debt and gold balance your investment and profit.  And if there is any upsurge in debt or other assets, then at that time your equity balances your Investment. Thus equity and debt provide balance to your portfolio.

Aggressive Hybrid Mutual Fund:

Aggressive Hybrid Mutual Fund is a type of hybrid mutual fund, in which 65 to 80% is invested in equity and 20 to 35% is invested in debt or others. In Aggressive Hybrid Mutual Funds, the risk is moderate to low. In Aggressive Hybrid Mutual Funds, equity and debt and gold etc. are invested, which if there is any loss in any of the assets, then the other asset balances it, and  In this way your chances of loss are reduced.

Who Should Invest in Aggressive Hybrid Mutual Funds:

Aggressive funds work by using a hybrid portfolio with the objective of maximizing profits over the long term while also generating regular income. There are many types of hybrid funds, out of which aggressive funds are more risky than the rest of the balanced hybrid funds.  In Aggressive Hybrid Mutual Funds, the fund manager predominantly invests in equity and equity-related instruments while investing a small portion in debt for stability. 

So, if you are looking for a mutual fund with moderate risk tolerance, minimum tenure of 5 years and at the same time high returns, then you can consider aggressive funds. But we also need to keep in mind that the risk appetite of an aggressive fund also depends on the selection of small/mid-cap stocks.  Therefore, it is important to carefully analyze the asset allocation in the portfolio of mutual funds before investing.

Also Read : Cipla Share is Rising : Why we should invest in these stock?

Some important things to keep in mind before choosing any aggressive hybrid mutual fund:

Expense Ratio

Before investing in any aggressive hybrid mutual fund, we must check its expense ratio because if the expense ratio of a fund is high, then half of your profit goes in commission. So choose such an aggressive hybrid mutual fund which has low expense ratio.

Asset Allocation

Before investing in any Aggressive Hybrid Mutual Fund, we must carefully analyze the portfolio of that fund.  See, I have told you that the Investment in equity and debt is made in the Aggressive Hybrid Fund, so even if there is a loss, the other asset balances it, but we need to see that the fund’s portfolio has small and mid-cap stocks.  How has the allocation been done?

If a large part is invested in small cap or mid cap, then you know that small cap and mid cap stocks perform well in the short term and not in the long term, then you may have to face losses.  Therefore, before choosing any fund, it is necessary to do a good analysis of the fund’s portfolio.

Taxation

Aggressive funds are treated similarly to equity funds with the following tax rules:

Long term capital gain (LTCG) above Rs 1 lakh is taxed at 10% without indexation and Short Term Capital Gain (STCG) is taxed at 15%.

Choosing the Right Aggressive Hybrid Mutual Fund:

Before choosing any aggressive fund, we should see that how much risk tolerance we have, how much financial is available with us. Choose a fund that fulfills your financial goals.

Quant absolute fund – Direct Growth:

Fund Information

Fund HouseQuant Mutual Fund
Fund typeOpen handed
Fund classHybrid
Fund categoryAggressive
Fund size₹1246.48cr
Lock-in period No
Expense Ratio0.56%
BenchmarkCrisil Hybrid 25+75 Aggressive Index
Fund Information of Quant absolute fund – Direct Growth

NAV performance of quant absolute fund – Direct Growth

The current NAV of quant absolute fund – Direct Growth is 342.29 which is 0.06% higher than its previous NAV.  The 52 Week High NAV of Quant Absolute Fund is ₹347.72 while the 52 Week Low NAV of 52 Weeks is ₹298.36.

Returns of quant absolute fund – Direct Growth

Absolute return does not take into account the time frame of the investment.  It can be calculated using the purchase price and the selling price.  However, the annualized return takes into account the investment time frame.  It can be calculated using the buy price, sell price and investment time horizon. 

Quant absolute fund – Direct Growth has given absolute return of 14% in last one year, 30.123% in 3 years and 82.35% in last 5 years.

In Quant absolute fund – Direct Growth, the minimum SIP investment amount is ₹1,000 and the minimum lumpsum investment amount is ₹5,000.

Calculation of profit from Quant absolute fund – Direct Growth

Let’s assume

  • Monthly SIP: ₹ 10,000
  • Maturity period: 5 years
  • Absolute Return Rate: 80.35%
  • Total Investment ₹ 6 Lakh
  • Total Profit : 4.94 Lakh
  • Total Maturity Amount : 10.94 Lakh

ALTERNATIVE FUNDS (CATEGORY PEERS)

Portfolio of Quant absolute fund – Direct Growth:

Asset allocation

AssetAllocation(%)value(cr)
Equity75.99%₹947.22
Debt23.54%₹293.45
Others0.47%₹5.81
Asset allocation of Quant absolute fund – Direct Growth

 Sector Allocation

SectorAllocation (%)value(cr)
Energy15.86%₹194.69
Financial15.66%₹195.2
Construction8.81%₹109.82
Healthcare8.62%₹107.45
Material7.0%₹87.25
 Sector Allocation of Quant absolute fund – Direct Growth

Investment Comparison Table

SchemeMonthly SIP Tenure Absolute Return RateProfit
Quant absolute fund₹10,0005 years80.35%₹ 4.94Lakh
Bank FD₹10,0005 years19.33%₹ 1.16Lakh
Category Average₹10,0005 years45.53%₹ 2.73Lakh
Gold10,0005 years31.5%₹ 1.89Lakh
investment comparison table

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