there are so many mutual funds listed in the market on the basis of their types, risks, capital gains, etc. investing in mutual funds is all about profit gaining with better risk diversification, as these fund is listed in the stock market but it is less risky to invest in mutual funds rather than directly investing in company stocks because these mutual funds are directly connected with the banks and financial institutions and for that reason even if the investor having issues while investing or redeeming the funds than they have an option to directly visit to the branch and get consulted from there. here in this article you can get to know about which fund is better hybrid funds or focused funds on the basis of there features and some other factors.
also read :- what is mutual fund?
- meaning of hybrid funds and focused funds :-
- hybrid funds meaning :-
hybrid mutual fund is one of the best type of mutual fund as it includes different class of assets in it's portfolio in order to reduce the risk factor to a particular level. when an investor invest in hybrid mutual fund it means he is investing a part of his fund in equity market that is, in the stocks of the companies and the remaining part of his fund will get invested in the government bonds, corporate assets , etc. investing in equity market is with the view to increase capital gains and investing in corporate fd's and rd's with the view to earn a fixed income on quarterly basis or half yearly basis or annually, here investors cannot invest directly into the market, they particularly invest in a mutual fund and after that the fund manager of the fund would invest in the market according to his will and expertise, the investment ratio is not specified while dividing the fund, so that's why the investing pattern varies from each other in all the mutual funds. in short hybrid mutual fund means investing in the market to increase capital gains along with reduction in risk factors.
- focused funds meaning :-
focused mutual funds are basically those mutual funds where the fund managers directly invest the whole funds in the stock market. it's a high risk mutual funds as compared to hybrid mutual funds, in this type of mutual fund mostly those investors participate who likes to receive more gains by taking a bit higher risk. eventually these focused funds are actually not only the sectoral focused funds which invest in only one kind of sector but in different different companies according to their growth rates. for example icici prudential technology direct plan growth is one of the best mutual fund of all times which is a sectoral based mutual fund which invests only in tech based companies. here the risk factors are higher as compared to hybrid fund and the rate of returns are also high accordingly.
- types of hybrid funds & focused funds :-
- types of hybrid mutual funds :-
conservative mutual fund -
aggressive hybrid fund -
dynamic asset allocation mutual fund -
multi asset allocation mutual fund -
- types of focused mutual funds :-
large cap fund -
mid cap fund -
small cap fund -
multi cap fund -
flexi cap fund -
sectoral focused fund -
- best hybrid funds and focused funds :-
- best hybrid funds to invest in 2021 :-
sbi equity hybrid fund direct plan growth -
sbi equity hybrid fund direct plan growth is an aggressive hybrid mutual fund. the total fund size of this mutual fund is of rs 49,086 crore. the compounded annual growth rate (cagr) of this fund is around 15%. this fund had provided total returns of 14.17% of returns in past 5 years and 17.25% of returns in last 3 years and in the year of 2021 it had provided the total returns of around 15.81%.
parag parikh conservative hybrid fund direct growth -
as one can understand by its name that this mutual fund is a conservative fund. it is one of the recently started mutual fund, the total fund size is of rs 692 crore and the returns provided by this funds till now is of 5.87%. however only in last 6 months it had provided the average returns of rs 5.09%. it means that even in short amount of time these mutual fund is performing well, so one can expect even more good returns in long term. so that's why it is one of the best mutual fund in 2022.
sbi conservative hybrid fund direct growth -
sbi conservative hybrid fund direct growth is one of the best mutual fund nowadays, about which peoples likes to think about while making investments in mutual funds. the current net asset value of this fund is of rs 56.95 and the total fund size is of rs 5,537 crores. apart from that the returns provided by this mutual fund is around 11.76% on annual basis and in last 3 years it had provided the average returns of around 12.09% and in past 5 years it had provided the average returns of around 8.93%.
also read :- how to make your first stock investment?
- best focused funds to invest in 2021 :-
sbi focused equity fund direct plan growth -
sbi focused equity fund direct plan growth is on of the best fund in terms of gaining returns as it provides higher returns even with short period of time. it had provided around 24.59% of returns in previous year, in last three years it had provided around 22.71% of returns and in past 5 years it had provided the compounded annual growth rate of around 18.59% of returns. here the total fund size is of rs 23,186 crore. the current nav of the fund is of rs 250.96.
axis focused 25 direct plan growth -
axis focused 25 direct plan growth is also a good mutual fund which provide good returns. as it is an equity focused mutual fund the risk inclusion in these ,utual fund is also high. the total fund size of this fund is of rs 19,456 crore the annual returns provided by this mutual fund is of around 12.48%, in last 3 years it had provide the average returns of around 20.38% and in past 5 years it had provided the compounded average growth rate of around 17.34% of returns.
icici prudential focused equity fund direct growth -
icici prudential focused equity fund direct growth is also a good option for investing in mutual fund, if someone wants to invest in equity focused mutual fund. the current market nav of this fund is of rs 52.58 the total returns provided by this fund in last 5 years is aof around 14.29% and in past 3 years it had provided the average returns of around 20.84%. the best thing about this mutual fund is that one can start investing in this fund even from rs 100.
- which fund is better hybrid fund or focused fund?
currently investing in mutual fund is a common thing, many banks and financial institutions provide their services to investors for the trading in mf market. here an investor can select the mutual fund types on the basis of his comfortability, age, risk bearing capability, expected returns, etc. an investor who prefers to gain higher returns can choose to go with focused funds as these kind of funds invests the collected money directly into the stock market and those investors who likes to get a fixed income on half yearly or annually basis along with increasing in capital gains would go to invest in hybrid mutual funds. the another reason for investing in hybrid fund in a rich diversification of risk factor.
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