How to Energize Your Portfolio with Reliance Equity Hybrid Fund?

Posted by Dishika Baheti on July 13th, 2018

Hybrid funds are becoming more and more popular in the Indian markets. Their diverse range of investments and power to attract more returns have made them the talk of the town. But amidst the army of options present in the market, it is becoming even more difficult for the average person to find out what he needs and whom he shall rely on to find it out. To reduce this confusion and make it crystal clear as where to park your funds, we bring to you a bulletin on Reliance Equity Hybrid Fund. Known as the champion of aggressive hybrid investments, this fund is a well-known name in the mutual fund industry and has many accolades to its credit, the most recent being a four star rating from CRISIL – the sacred institution for mutual fund ranking.

Down here, you’ll find all the apt reasons as why Reliance Equity Hybrid Fund (G) is considered one of the top funds in the category of hybrid schemes. The statements made down below aren’t any amateur claims, but are the summary of the praises made by the market experts. They are pro statements and you’d find there genuineness as you’d read them all.

The Reasons for Excellence

• Perfect Growth Venture
  One of the primary reasons to invest in mutual funds is to attain high growth and high capital appreciation. However, most often the investors to face disappointing results because the funds that they chose weren’t either best suited to their profile, or were just too fragile to handle the market blows. But investment in Reliance Equity Hybrid Fund (G) is a totally different story. Here, the portfolio comprises of quality stocks of high end companies that are moving very fast to achieve their ultimate objective –high capital growth.
• Better Protection
  One of the things about hybrid funds is that they hold expertise both in earning and protecting. Besides bestowing growth opportunities, they are quite capable of shielding the funds against the market volatility, thanks to the presence of debt in the portfolio. While the equity adds momentum to the growth, the debt takes charge of the safety and security and sees to it that no unnecessary risk seeps inside the portfolio.
• Diversity
  It’s a well-known fact that no portfolio can survive on a single flavour investment; there ought to be appropriate diversification for the fund to move ahead and grow. Without diversification and without the induction of proper variety, no portfolio can survive and thus you can’t attain growth. This is where Reliance Equity Hybrid Fund (Growth) enjoys an edge. The fund, as explained below, has both equity and debt which are the key factors in securing diversification. Hence, the investor here enjoys the multiple benefits, including diversification, with just one single investment in Reliance Equity Hybrid Fund – Regular Plan (Growth).
• Tax Benefits
  The recent budget announcement made by the Hon’ble Finance Minister of India, Arun Jaitley, made significant impact on the taxation of the mutual funds. Previously, there weren’t any tax impositions on the long-term capital gains. But now, any long-term capital gains earned post 31st January 2018 will now be taxed at the rate of 10%, without counting in any indexation. Now, though this is a displeasing news for pure-equity investment holders, there is a bit relief for the hybrid stakeholders. This is because the entire portfolio in the hybrid fund isn’t dedicated to equity, and the presence of debt provides some leeway in taxation. Reliance Equity Hybrid Fund contains equity and debt in the ratio of 72.46% and 29.57%, respectively, and thus there is a good scope of tax-saving in terms of non-imposition to some extent.
• High Rating by CRISIL
  CRISIL is a globally renowned credit rating agency. A favourable rating can skyrocket the fund’s success in the market, but on the other hand, a poor ranking can also destroy its market position. Reliance Equity Hybrid Fund – Regular Plan has earned the rare four-star ratings from CRIISL, by exhibiting stellar performances and giving outstanding returns. The following table contains the past five year performance of the top funds in the hybrid category, including Reliance Equity Hybrid Fund.
  
  

So, if you are planning an investment in mutual funds and have no clue where to start from, then clinging to Reliance Equity Hybrid Fund will give you a good head start.