Invesco Hybrid Mutual Fund

Investment Objective of Invesco Hybrid Mutual Fund

Over the medium to long term, Invesco MF Balanced Funds seek to give investors consistent income and capital growth. These hybrid funds combine fixed-income and equity securities to produce growth with a relatively stable portfolio. The type of balanced fund would determine the asset allocation percentage.

 For an aggressive hybrid fund, the equity allocation would be between 65% and 80%, but for a cautious hybrid fund, it could be as low as 10% to 25%. On the other hand, a multi-asset allocation fund may take exposure to different asset classes like gold, debt, and equity. A programme like an Equity Savings Fund might expose itself to some derivatives. Consider your financial situation before choosing an investment fund.

Risks Involved in Invesco Hybrid Mutual Fund

MF Invesco Comparing balanced funds to equity and debt funds, they have a reasonably low to moderately high market risk. The value of the fund may fluctuate depending on how much the price of the underlying equities or debt instruments fluctuates. Interest rates, exchange rates, governmental policies, tax regulations, and other economic factors may all impact the price of stocks or bonds.

The degree of portfolio diversification and exposure to equities as an asset class determine the level of risk. A hybrid fund that invests substantially in long-term bonds and stocks will be much riskier than one that favours debt as an asset class. Before investing, investors may consider their risk tolerance.

Return Potential of Invesco Hybrid Mutual Fund

Returns are a byproduct of the investor's assumed risk. The balanced funds sit between equities and debt funds on the risk-return spectrum. Invesco MF Balanced funds benefit from the combination of equities and bonds, which enables them to offer greater risk-adjusted returns at relatively moderate volatility. These funds have a track record of generating returns that range from 10% to 12% on average over five years or longer.

Certain equity-oriented balanced funds have recently produced returns comparable to large-cap equity funds. Due to greater exposure to mid-cap equities, this resulted. However, balanced Invesco MF funds do not promise assured returns, and their performance may change over time.

Who Should Invest in Invesco Hybrid Mutual Fund?

Investors with a low tolerance for volatility can consider Invesco MF Balanced funds. This might make it easier for them to monitor any losses from dynamic asset allocation. But if you're an ambitious investor, equities funds can be preferable to balanced funds. You will be able to realise equity's full potential with this method.

Additionally, a moderately risk-averse investor with long-term objectives like saving for retirement or their children's education may invest in balanced funds. The fund manager of Invesco MF Balanced funds rebalanced the portfolio to benefit from market fluctuations. Investors who want to avoid the hassle of managing their portfolios can think about investing in these funds.

Tax on Invesco Hybrid Mutual Fund

If investors redeem equity-based scheme units after a year or more of investment, they will be responsible for paying an LTCGT. They will be subject to 10% taxation on capital gains over Rs. 1 lakh without the advantage of indexation. Any sum under Rs. 1 lakh is exempt from taxes. Like the above, an individual must pay an LTCGT of 20% with indexation benefit and 10% without it for gains on debt-oriented funds realised after three years.