New Delhi. There has been continuous upheaval in the stock market for the last few days. In such a situation, if you are also worried about the market and want to make your money safe, then you can invest in new options. With signs of further decline in the market, mutual fund investors are also looking for safe ways to invest. Looking at asset allocation and stability, most people are turning to hybrid funds. This is the reason why the asset under management (AUM) of hybrid funds reached a record level of Rs 8.61 lakh crore in August this year.

The phenomenal growth of hybrid mutual funds depends on the nature of these funds. Hybrid funds invest in two or more asset classes, usually primarily equity and debt as well as commodities such as gold and silver. These funds offer diversification and asset allocation to balance risk and returns. Hybrid mutual funds essentially attempt to offer the best returns from multiple asset classes in a single product.

Markets rise or fall…no loss
When markets are high, the equity in the fund gives good returns, while debt provides stability. These funds help in achieving better returns in the long term through equity and short-term stability and regular income through debt. Hybrid funds offer several benefits. These include capital appreciation, as the wealth grows from equity. Investors also benefit from lower volatility due to the debt portion of the fund.

Money goes to many places at once
Hybrid funds give diversification to your investments, which is a significant advantage. These funds diversify not only across different asset classes but also across sub-classes such as large cap, mid cap and small cap stocks. Hybrid funds also offer active rebalancing, which helps fund managers adjust the large-capo mid-cap, and small-cap market conditions to optimize returns for investors.

Who gave the highest return?
If we talk about returns, then the leader in this group, Nippon India Mutual Fund, offers many options. It includes many hybrid funds like Nippon India Multi Asset Allocation Fund, Nippon India Asset Allocation FOF, Nippon India Equity Savings Fund, Nippon India Balanced Advantage Fund and Nippon India Equity Hybrid Fund. Some of these funds have given attractive returns in the last one year. Nippon India has given a return of 35.82%, and Nippon India BAF has given a return of 25.75%. Fund houses like ICICI Prudential, SBI, Kotak Mutual Fund and Aditya Birla also offer many hybrid funds.