Bandhan Hybrid Equity Fund - Direct Plan
Bandhan Hybrid Equity Fund - Direct Plan
An open ended hybrid scheme investing predominantly in equity and equity related instruments
What is the Meaning of Hybrid Funds?
Hybrid mutual funds are an investment scheme which invest in more than one asset class. Investment in multiple asset classes allows investors to potentially benefit from diversification and potentially avoid concentration risk.
Equity hybrid funds are also known as aggressive hybrid funds. They are a type of equity-oriented investment scheme that primarily invest in equity and equity-related securities. The fund's assets are also exposed to debt instruments to potentially reduce risk. Equity hybrid mutual funds help investors diversify their portfolio and access multiple asset categories. While diversification may potentially mitigate risk, equity hybrid funds may potentially help investors to create wealth in the long term.
Equity hybrid funds are mandated to invest between 65% to 80% of funds assets in equity. The remaining assets can be invested in debt instruments. As hybrid equity funds invest primarily in equity instruments they are vulnerable to market volatility and fluctuations. They are classified as a high-risk investment option.
Hybrid equity funds are taxed like equity funds. Units held for more than 3 years, gains above ₹1 lakh are subject to LTCG at 10%. Gains on units held for less than 3 years are subject to STCG at 15%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load10% of investment: Nil,
Remaining investment: 1% if redeemed/switched
out within 12 months from the date of allotment.
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : CRISIL Hybrid 35+65 Aggressive IndexAlternate Benchmark : Nifty 50 TRI
- Performance
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Performance as on 28th March 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 30/12/2016 Since inception | 1 year | 3 year | 5 year | 10 year | 30/12/2016 Since inception | |
| Bandhan Hybrid Equity Fund - Regular Plan - Growth | 30.26 | 15.45 | 13.26 | N.A. | 11.13 | 13,035 | 15,404 | 18,654 | N.A. | 21,489 |
| 29.20 | 14.37 | 14.19 | 13.45 | 13.90 | 12,929 | 14,964 | 19,426 | 35,347 | 25,683 | |
| 33.11 | 16.75 | 15.37 | 14.16 | 16.25 | 13,322 | 15,935 | 20,451 | 37,653 | 29,770 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Harshal Joshi (w.e.f 28/07/2021), Mr. Manish Gunwani (w.e.f 28/01/2023), Mr. Viraj Kulkarni (w.e.f 07/01/2022)
View fund performance of other funds managed by Mr. Harshal Joshi, Mr. Manish Gunwani, Mr. Viraj Kulkarni
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/3spfzbo
Bandhan Hybrid Equity Fund
(Scheme Risk-o-meter)
CRISIL Hybrid 35+65 Aggressive Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Investment predominantly in equity and equity related securities and balance exposure in debt and money market instruments.
Who Should Invest in Equity Hybrid Funds?
Equity hybrid funds concentrate 65% to 80% of their assets in equity and equity-related instruments. The remaining assets can be allocated to debt instruments. Concentration risk may be reduced by allocating a portion of the assets in debt instruments which may be relatively less vulnerable to volatility, however, equity-oriented instruments are vulnerable to market volatility. As a result, these funds are associated with a high level of risk and equity hybrid funds may not be suitable for risk averse investors.
Equity hybrid mutual funds are suitable for investors seeking long-term wealth creation and may not be a favourable short-term investment option. Moreover, equity hybrid mutual funds are taxed like equity funds, and may not be suitable for investors seeking tax-saving investment options.
FAQs on Equity Hybrid Funds
What does Equity Hybrid Mutual Funds mean?
Equity Hybrid Funds are also known as aggressive hybrid funds. This is a type of hybrid investment scheme which invests 65% to 80% of their assets in equity and equity-related securities. The remaining securities are invested in debt instruments. This allows investors to diversify their assets and potentially reduce risk.
Are Equity Hybrid Funds good?
Equity Hybrid Mutual Funds are suitable for investors with a high risk appetite, seeking long-term wealth creation. As they invest in equity and equity-related securities, they may not be suitable for risk-averse investors. However, they may be relatively less risky than pure equity funds as diversification may potentially mitigate risk.
What are the disadvantages of Equity Hybrid Funds?
Equity Hybrid Funds are taxed like equity funds. Units over ₹1 lakh held over 3 years are subject to LTCG tax at 10%. Units held for less than 3 years are subject to STCG at 15%. Moreover, equity hybrid funds are vulnerable to market fluctuations and are categorised as a high-risk fund.
Why invest in Hybrid Funds?
Hybrid Funds in mutual funds may be suitable for investors seeking diversification of their assets. All hybrid funds are mandated to invest in at least 2 asset classes. This diversification may potentially reduce risk. Moreover, hybrid funds are suitable for long-term wealth creation.
What is the difference between an Equity Hybrid Fund and Balanced Fund?
Balanced Funds and Equity Hybrid Funds are both a type of hybrid mutual fund. Balanced funds invest 40%-60% of their total assets in equity and debt instruments. Equity hybrid funds, also known as aggressive hybrid funds, invest 65%-80% in equity and equity-related instruments. The remaining assets are invested in debt instruments. While both these funds allow for diversification of assets, balanced funds may be less vulnerable to market volatility and more suitable for risk-averse investors.
Are Hybrid Funds Equity or Debt?
Hybrid Funds invest in equity and debt instruments. Equity-oriented hybrid mutual funds invest at least 65% of their assets in equity and equity-related instruments. Debt-oriented hybrid funds invest at least 75% of their assets in debt instruments.