Use Hybrid Funds to Beat Volatility

Sell in May and go away seems to be the most appropriate decision for those investors who cannot handle increased volatility in the equity markets. However, for those investors who intend to remain invested for the long term, this increase in volatility is not easy to come to terms with. One of the smartest ways to beat the markets while also lowering the risk component i.e. volatility is to choose top quality Hybrid Funds. Such funds are tailor-made products for moderate risk-takers and the best part about hybrid funds is their ability to deliver market-beating returns.

Taking this idea forward, our cover story in the current issue explains in depth the pros and cons of investing in hybrid funds. And as you go through this story, make sure to jot down all the tips that will be of use. More importantly, act on the advice shared since it will help add tremendous value to your mutual funds’ portfolio. Also, for those who believe in concentrated portfolios and do not repose much faith in holding more than 30 stocks across different sectors, focused funds are an option.

Our special story on focused funds will help you understand how these funds work and highlight the most important aspects to keep in mind while choosing them. The headwinds are known to the market participants and it is possible that we may see some more pain in the equity markets, leading to a sharp increase in volatility. With the volatility expected to increase, you could choose to increase your SIP amount in 2022. Such turbulent times often prove to be excellent opportunities in the long term since we get a chance to accumulate units at lower levels.

Yogesh Supekar
Executive Editor