Fund Of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
In today’s volatile market environment, investors are increasingly seeking a balance between growth and stability. Hybrid mutual funds offer this unique advantage by blending the wealth creation potential of equities with the income stability of debt instruments. With interest rates stabilising and equity markets showing selective momentum, Hybrid Funds are positioned to deliver moderate returns with lower volatility, making them an ideal investment choice for conservative to moderate risk takers. Among the various options available, the SBI Equity Hybrid Fund Direct Plan stands out as a compelling choice for long-term wealth accumulation.

The fund has shown a mixed but generally competitive performance when benchmarked against its category averages. Over the 1-year period, the fund returned 10.37 per cent, outperforming the category average of 5.8 per cent. In the 3-year and 4-year spans, the fund delivered 16.2 per cent and 13.38 per cent, slightly underperforming the category averages. While its 10-year return of 13.08 per cent edges out the average of 12.58 per cent, indicating strong long-term consistency. As of June 30, 2025, the fund’s asset allocation leans towards equity with a substantial holding of 73.08 per cent, while 22.23 per cent is allocated to debt instruments. The fund exhibits a well-diversified sectoral allocation. Financials dominate the portfolio with 24.5 per cent. Services come next at 9.88 per cent, followed by Communication at 5.25 per cent and Technology at 4.81 per cent. The fund’s top holdings reflect a preference for strong, stable companies with proven track records. HDFC Bank Ltd. leads the pack with 6.87 per cent allocation, followed by Bharti Airtel Ltd. at 4.34 per cent. These companies offer robust fundamentals and play a strategic role in diversifying the portfolio while anchoring growth potential. For investors seeking a fund that blends growth with relative stability— especially during market transitions—this fund deserves a serious look.

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