Why New Investors Should Prefer Investing in ABSL Equity Hybrid 95 Fund?
Mutual funds are for every kind of investors, but it is equally important for you to invest in the funds which suits your risk appetite. Suppose, a new investor has invested his capital in a highly risky fund and seen some loss in the very first month of investment, then he will get panicked and at the same time, will never invest in the market further. Therefore, it is always suggested by the experts of MySIPonline to invest in the funds that are suitable for you. If you are a new investor and don't want to take high-risk on your capital, then Aditya Birla Sun Life Equity Hybrid 95 Fund is best for your profile. The fund keeps the balance in its portfolio by investing in equity as well as debt instruments, which provides investors a cushion from the equity market volatility. So, let's see why it is one of the best funds for novice investors.
The Right Balance
ABSL Equity Hybrid Fund has a right balance of equity and debt in its portfolio. It is investing its 60-80% corpus in the equity securities while the rest 20-40% in debt and money market instruments. As per the financial experts of MySIPonline, the equity and debt have positive relationship and help the fund to perform well, especially when the market cycle is turning. For example, in the year 2008 of the financial crisis, the bonds have given good returns as RBI has cut the interest rates to revive the economy. Therefore, this balance in the portfolio keeps it positive in the various market conditions.
Most of the investors who are new in the industry prefer to stay on the conservative side of the market. They don't want to risk the whole amount in the equities for higher returns and like to play safe as they are scared of financial crisis like the one of 2008. But Birla Sun Life Equity Hybrid Fund is delivering stable returns to the investors from the past many years by outperforming its benchmark and category. The fund has delivered the returns of 19.91%, similar to many equity funds since its launch (since Feb 10, 1995).
As new investors get panic when the market takes a downturn and many of them even pull back their money. However, Aditya Birla Sun Life Equity Hybrid Scheme is good at managing volatility, as it reduces the exposure to equities is they are trading at premium. The fund can manage volatility better than pure equity funds as it has diversified portfolio in other assets too. This can be seen in the losses of the fund in the year 2008 and 2011, when the fund has lagged behind the index as well as peers, which shows that it can manage the bull and bear phases both in the best way.
ABSL Equity Hybrid has given exceptional returns in the past many years, which has made it one of the best schemes in the category. At the same time, the analysts of MySIPonline are suggesting the new investors to stay invested in this fund in a staggered way through SIP as the market is going to stay volatile for the next one year due to elections and trade wars.
If you have any query regarding investment in the regular plan of ABSL Equity Hybrid Scheme you can contact us via call or email as well as post your queries at https://goo.gl/WofRJm, and our experts will get back to you soon.