Motilal Oswal Hybrid Mutual Fund schemes

Investment Objective

The objective behind an investment in Motilal Oswal Hybrid Mutual Fund schemes is regular income and capital appreciation over a medium to long tenure. The funds strike the perfect balance between growth and a stable portfolio by investing in stocks and fixed-income securities. The type of balanced fund determines the best Motilal Oswal Hybrid Mutual Fund allocation. An aggressive hybrid fund's equity allocation would be 65%-80%, whereas a conservative hybrid fund's equity allocation could be as low as 10%-25%. A multi-asset allocation fund, on the other hand, may invest in multiple asset classes such as equity, debt, and gold. Furthermore, a scheme such as an Equity Savings Fund may be exposed to derivatives. Therefore, it is advised to be in a good understanding of the investment objective before investing.

Risks Involved in Motilal Oswal Hybrid Mutual Fund

The Motilal Oswal Hybrid Mutual Fund risk dances between moderately low to moderately high compared to debt and equity funds. Any fluctuations in the price of the allocated stock or debt affect the Motilal Oswal Hybrid Mutual Fund performance. The level of risk is determined by portfolio diversification and exposure to equity as an asset class. A hybrid fund heavily invested in equities and long-term bonds are significantly riskier than a fund more focused on debt as an asset class. Before investing in a Motilal Oswal Hybrid Mutual Fund scheme, investors should consider their risk tolerance.

Return Potential of Motilal Oswal Hybrid Mutual Fund

It is a universally known fact that mutual fund returns are incidental to market risk. The Motilal Oswal Hybrid Mutual Fund risk gets controlled owing to the combination of stocks and bonds. This fuels the Motilal Oswal Hybrid Mutual Fund return to an average of 10% - 12% over a tenure of five years. Recently, the returns from some equity-oriented balanced funds have been comparable to those from large-cap equity funds. This was due to greater exposure to mid-cap stocks. It must be noted that Motilal Oswal Hybrid Mutual Fund returns are not guaranteed, and the fund’s performance may vary from one period to the next.

Who Should Invest in Motilal Oswal Hybrid Mutual Fund?

Investors with a low tolerance for volatility will find Motilal Oswal Hybrid Mutual Fund schemes ideal. This may assist them in keeping track of the losses caused by dynamic asset allocation. Furthermore, an investor with a moderate risk tolerance and long-term goals such as child education or retirement planning may invest in the best Motilal Oswal Hybrid Mutual Fund. The fund manager rebalances the portfolio to take advantage of market movements and enhance the Motilal Oswal Hybrid Mutual Fund performance. Investors who want to avoid the stress of portfolio management may consider investing in these funds.

Things To Consider Before Investing in Motilal Oswal Hybrid Mutual Fund

There are certain things that investors must consider before investing in Motilal Oswal Hybrid Mutual Fund schemes. They are given below.

• Financial Goals
• Investment Horizon
• Risk Tolerance
• Financial Objectives
• Investment Strategy

Tax on Motilal Oswal Hybrid Mutual Fund

Motilal Oswal Hybrid Mutual Fund schemes have tax liabilities. Capital gains for debt funds are added to your income and taxed at the applicable income tax slab. Long-Term Capital Gains  (LTCGs) from the debt component are taxed at 20% after indexation and 10% without it. The taxation policy for equity funds remains unchanged. LTCG of more than INR 1 lakh is taxed at 10%, while Short-Term Capital Gain (STCG) is taxed at 15%.