Asset class allocation (%) Conservative (%) Moderate (%) Aggressive (%) Cash MFs 10 – 20 5 – 10 0 – 5 Debt MFs 55 – 75 35 – 55 15 – 25 Equity MFs 15 – 25 35 – 55 55 – 75 Gold MFs 5 – 15 5 – 10 0 – 5 MF category allocation (INR) Asset Class Conservative Moderate Aggressive Money Market funds Cash 10,00,000 7,50,000 5,00,000 Short Duration funds / Corporate Bond funds Debt 30,00,000 20,00,000 10,00,000 Medium Duration / Medium to Long Duration 20,00,000 15,00,000 7,50,000 Dynamic bond funds (with G-Sec exposure) 10,00,000 10,00,000 7,50,000
Understanding Hybrid Funds
Hybrid funds are investment vehicles that combine two or more asset classes, typically equities and bonds, to provide a balanced approach to investment. They are designed to offer investors the potential for growth through equities while mitigating risk with the stability of bonds. * Equity Component: This part of the fund invests in stocks, offering the potential for higher returns.
Large-cap, Mid-cap, Small-cap). ## Understanding Fund Allocation Investing in mutual funds can be a complex process, but understanding how to allocate your investments can simplify this process and potentially increase your returns.
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