Shriram Hybrid Mutual Fund

Investment Objective

Shriram Hybrid Mutual Funds' long-term objective is to provide investors with a good opportunity to expand their wealth. These funds invest primarily in equities and equity-related securities in a specific proportion in accordance with their mandate, which is outlined in their plan of information and respective documents. The fund management will choose high-quality shares after undertaking a thorough analysis to ensure that the returns of the portfolio continue to match category benchmarks and expectations. The fundamental method for choosing stocks could be growth at fair pricing, value, or growth. Capital appreciation, which results from increases in stock values over a particular investing duration. It also happens when the profits received by the hybrid mutual fund are then reinvested so as to purchase further units of the plan.

Risks Involved in Shriram Hybrid Mutual Fund

Shriram Hybrid Mutual Funds have a reasonably higher market risk when compared to balanced funds and debt funds. The fund's value may fluctuate along with the price of the concerned stock. Stock values could be impacted by adjustments in interest rates, currency exchange rates, governmental tax laws, policies,and other economic factors. The level of risk is also influenced by the diversification of the portfolio. Shriram Hybrid Mutual fund,  theme-based funds have a higher risk in the market than diversified equities funds. Large-cap equity funds will generally carry less risk than small- or mid-cap equity funds. Investors may consider their own tolerance of risk before investing in any kind of programme.

Return Potential of Shriram Hybrid Mutual Fund

The result of the investor's assumed risk is a return. Shriram Hybrid Mutual Fund stock funds generate much higher returns as compared to the debt funds and balanced funds. These funds do have a history of generating returns that, on average, hover around 12% during intervals longer than five years. However, Shriram Hybrid Mutual Funds don't guarantee returns, and their performance can fluctuate over time. Due to its high risks, a specialised fund may have a return potential than a broad stock fund. Large-cap funds, on the other hand, are recognised for providing steady returns during all markets and their cycles. To boost the returns, one can consider adding a few small and mid cap funds to the entire portfolio.

Who Should Invest in Shriram Hybrid Mutual Fund?

Shriram Hybrid Mutual Fund funds are a good option for investors aiming for long-term financial growth over a period of five years or more. Since the value of the fund might rise or fall depending on market conditions, these mutual funds are designed for all kinds of investors with a much higher risk tolerance. Due to their high return producing potential, Shriram Hybrid Mutual Funds are the best option for attaining long-term goals, including paying for a child's school, saving for retirement, and buying a house. To fully realise the potential of mutual equity funds, you must keep your investment during the defined investment duration, which is often 10–12 years or longer.

Things To Consider Before Investing in Shriram Hybrid Mutual Fund

Shriram Hybrid Mutual Funds are a good option for investors aiming for long-term financial growth over a period of five years or more. Since the fund value may rise or fall depending on market conditions, these funds are designed for investors with a relatively higher risk tolerance. Due to their high return producing potential, Shriram Hybrid Mutual Funds are the best option for attaining long-term goals, including paying for a child's school, saving for retirement, and buying a home. To fully realise the potential of equity funds, you must keep your investment within the defined investment horizon, which is often 10–12 years or longer.

Tax on Shriram Hybrid Mutual Fund

If your total long-term capital gain in the Shriram Hybrid Mutual Fund surpasses Rs 1 lakh in a fiscal year, the current tax rate is 10%. There are no taxes or surcharges involved.