what are MIP, hybrid and balanced funds

S

sunnysachdeva

New Member
#1
#1
HI junta,

I am new to the mutual fund investing.

recenlty i started some research on moneycontrol.com. and came to know about certain terminologies.

Please explain what are MIP, balanced , hybrid funds and when and why one should invest in these funds.

Thanks in advance
 
M

milind

Active Member
#2
#2
sunnysachdeva said:
HI junta,

I am new to the mutual fund investing.

recenlty i started some research on moneycontrol.com. and came to know about certain terminologies.

Please explain what are MIP, balanced , hybrid funds and when and why one should invest in these funds.

Thanks in advance
Click to expand...
Hello,

In general, hybrid funds provide you a mix of debt and equity asset classes of varying degree. Equity provides you high returns, but at higher risk. Debt provides you smaller returns, but at much lower risk. The terminology may vary AMC to AMC, but roughly the names map as follows.

Debt funds - 100% debt
MIP - upto 20% equity, rest in debt - e.g. Reliance MIP, HDFC LT MIP
Hybrid, debt focussed - about 1/3rd equity, rest debt
Hybrid, equity focussed - about 2/3rd equity, rest debt - e.g. HDFC Prudence
Equity - 100% in equity

-- Milind
 
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