Are low interest income challenging You?


We all have been come across moving with a southward income interest for almost past decades.

But the scenario of the present on low-interest rates appears like a disaster for us.

By the way, a disaster will always push our minds to be innovative. Like late moved for an alternative to earn for better returns.

We often hear that return and risk will go side by side. Risk is something, which is nobody knows or is understandable.

We have to learn it difficultly that even traditional fixed return products also carry some risk.

And it reduces the interest rates.

When it comes to equity, it all hangs on how is our reaction to the universal truth that equity markets are tense.

But here the question is, is it possible without taking a risk to earn a higher return?

The answer will be both yes or no. It is necessary to be willing to take risks both mentally and emotionally and balance between them.

Besides, when taking the risk in equity-oriented mutual funds, are mainly referring to the sudden change of markets in the short to medium term.

Invest in a combination of two different asset classes as Debt and Equity, as the name indicates Hybrid Mutual Funds.

The debt portion will invest in Corporate Bonds, gets invested in fixed income instruments like Govt Bonds, etc.

And the Equity portion will invest in the listed companies’ shares, which is high returns in the long term.

An important part is Hybrid Funds are not new, they have been existed for over decades.

Hybrid Funds mark investors’ need for asset allocation.

Depending upon the proportion of Debt and Equity, they will further get classified as Aggressive Hybrid Fund, Balanced Advantage Funds or Dynamic Asset Allocation, Conservative Hybrid Fund, Balanced Hybrid Fund.

The good part is on DAAF or BAF, the investing period for to achieve a goal is almost 4 to 6 yrs and the investment was for long-term but the risk-taking is lower.

Most importantly, the return deviation is a little higher compared to other investments.

The good reasons to invest for those who wanted to a regular income for a longer-term on this category of fund, the Systematic Withdrawal Plan is best for them.

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