PPFAS Hybrid Mutual Fund

Investment Objective of PPFAS Hybrid Mutual Fund

The investment objective of the PPFAS Hybrid Mutual Fund is to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed-income securities. The fund aims to provide investors with a mix of growth and stability by investing in high-quality companies with strong fundamentals and debt instruments with low credit risk.

Risks Involved in PPFAS Hybrid Mutual Fund

As with any investment, PPFAS Hybrid Mutual Fund is also subject to certain risks. Some of the risks associated with this fund are:

• Market risk: The value of securities held by the fund may be affected by fluctuations in the stock and bond markets.
• Credit risk: There is a risk that the issuer of the debt securities held by the fund may default on its payments.
• Interest rate risk: The value of debt securities may decline if interest rates rise.
• Liquidity risk: The fund may not be able to sell its securities at the desired price due to a lack of liquidity in the market.

Being acquainted with these PPFAS Hybrid Mutual Fund risks will help you to plan your investment accordingly.  

Return Potential of PPFAS Hybrid Mutual Fund

PPFAS Hybrid Mutual Fund has the potential to generate long-term capital appreciation by investing in a mix of equity and debt securities. The fund has delivered a CAGR of 14.65% since its inception in 2013 (as of March 31, 2023). However, past performance is not a guarantee of future returns, and investors should consider their investment objectives and risk tolerance before investing. Always take PPFAS Hybrid Mutual Fund returns into account and look for the trends before finalising your investment decision. 

Who Should Invest in PPFAS Hybrid Mutual Fund?

PPFAS Hybrid Mutual Fund is suitable for investors who are looking for a balanced investment option that offers both growth potential and capital preservation. The fund is ideal for long-term investors who can withstand short-term fluctuations in the market and have a moderate to high-risk tolerance. Investors who are looking for a well-diversified portfolio of equity and debt instruments with a long-term investment horizon can consider investing in this fund.

Things To Consider Before Investing in PPFAS Hybrid Mutual Fund

Before investing in PPFAS Hybrid Mutual Fund, investors should consider the following:

• Investment horizon: This fund is suitable for investors with a long-term investment horizon of at least five years.
• Risk tolerance: As with any investment, PPFAS Hybrid Mutual Fund carries a certain risk level. Investors should consider their risk tolerance before investing.
• Investment objective: Investors should align their investment objective with the objective of the fund.
• Fund manager: PPFAS Hybrid Mutual Fund is managed by an experienced fund manager who follows a value investment approach. Investors should evaluate the fund manager's track record before investing.
• Expense ratio: The expense ratio of the fund should be evaluated before investing, as it impacts the returns.

Additionally, the investor must get familiar with the PPFAS Hybrid Mutual Fund NAV, along with the fund’s performance. 

Tax on PPFAS Hybrid Mutual Fund

PPFAS Hybrid Mutual Fund is subject to taxation as per the prevailing tax laws in India. Long-term capital gains (LTCG) arising from the sale of units of the fund held for more than 12 months are taxed at a rate of 10% without indexation or 20% with indexation, whichever is lower. Short-term capital gains (STCG) arising from the sale of units of the fund held for 12 months or less are taxed at the investor's marginal tax rate.