New Delhi: For some time now, Mutual Funds have been considered to be a good option for investment. It has become popular among investors for its great returns, but many people are afraid to invest in it considering the risk. Actually, the return received from Mutual Funds depends on the ups and downs of the stock market.

If you also want to invest in mutual funds but do not want to take risk, then you can select the option of Hybrid Mutual Fund. We will tell you in detail about hybrid mutual funds in this article.

What is a hybrid mutual fund?

There are many types of mutual funds like debt, equity and hybrid. Out of these, in hybrid mutual funds, the investor can invest in all assets (like equity, debt, gold etc.). In this fund, the risk is less as compared to the other two funds and the returns are also good.

Now the question arises that why is the risk less in hybrid mutual funds? The answer is that you can invest in all assets in it. If the stock market falls, then you can get positive returns from gold and debt. It is believed that the stock market and gold do not fall together. During the tension between Israel and Iran, while on one hand the market fell, on the other hand the prices of gold were continuously increasing.

Who should invest in hybrid funds?

If you do not want to take risk and are a novice in mutual fund trading, then you should start your investment with hybrid funds. If you invest in equity instead, there is a possibility that you may incur losses due to lack of knowledge about the market. On the other hand, in hybrid funds, your capital will be secure to some extent and you will also get better returns.

It is often seen that new investors do not know the stock market and they invest in the wrong way, due to which they have to face losses. In such a situation, hybrid funds are a very good option for new investors. By investing in it, they can keep the investment amount safe along with good returns. Let us tell you that there are 6 types of hybrid mutual funds. In this, the ratio of investment in equity, debt and gold keeps increasing and decreasing according to the capacity.