Hybrid instruments are generally opting by investors who have certain amount of knowledge about both equity and debt. Below are few factors to be considered before choosing a hybrid funds.
Investing in private and public sector are two different things with unique performances. The private sector is always knowns for higher returns and higher risks. Whereas in government sector the returns are comparatively low but they are safely backed by the government.
Nature of fund
As described above decided the equity debt fund ratio is the first thing a investor has to do before investing in hybrid fund. As each fund is unique it’s advisable for the investor to know the portfolio ratio before investing.
Past performance is a considerable factor before choosing any fund. A fund should have a stable return. Also note that having both gains and few loses is not a bad sign. The investor has to analyse such things before investing.
Even though the equity debt fund ratio is decided it’s vital to know where the money is to be invested. It’s up to the investor to go with a particular fund and its portfolio. The investor has to analyse the fund portfolio before investing.