Aggressive Hybrid Funds Plan
Aggressivehybrid funds fall in the category of hybrid schemes . These take exposure to both debt and equity securities in proportions specified in the scheme’s investment objective. As compared to plain vanilla balanced funds, these funds have differences in asset allocation. In case of balanced hybrid funds, the fund manager is not allowed to take advantage of arbitrage opportunities. In arbitrage, he/she buys securities at a low price in one stock exchange and sells them at a higher prices in the other. Gains accrue as a result of the price differential of the same security in different market. The autonomy and choice of investment options available to aggressive hybrid funds is much higher than balanced hybrid funds. Aggressive hybrid funds enjoy the flexibility to take advantage of arbitrage opportunities available in the market. These funds have to allocate at least 20% of fund assets towards debt instruments. The investment in equity and equity related instruments varie...