Should I add a multi-asset or aggressive hybrid fund to my mutual fund portfolio?

Navigating the world of mutual funds can be a daunting task, especially when you’re presented with a choice between two intriguing options: multi-asset and aggressive hybrid funds. Both these investment avenues have their merits, and in this blog, we’ll explore the factors to consider when deciding whether to add a hybrid mutual fund to your portfolio. By the end, you’ll be better equipped to make an informed choice that aligns with your financial goals.

Understanding Multi-asset and hybrid mutual funds

Before delving into the choice between multi-asset and aggressive hybrid funds, let’s understand what these funds are. Hybrid mutual funds and multi-asset funds are designed to provide investors with a balanced mix of different asset classes. In a hybrid fund, the portfolio typically combines equities, debt instruments, and sometimes even other asset classes like gold or international securities. The primary goal is to strike a balance between risk and …