They offer diversification and risk management.
Hybrid Funds, often referred to as balanced funds, are a type of mutual fund that invests in a diverse range of asset classes. These can include equity, debt, bonds, and other financial instruments. By spreading their investments across different types of assets, these funds offer investors a level of diversification, reducing their exposure to risk. This can be particularly beneficial for those seeking a more balanced portfolio. With hybrid funds, investors can reap the potential rewards of different asset classes while minimizing the potential downsides.
