Are Low Interest Income Products Challenging Your Wallet?

The return profile of traditional fixed income products has been on a steady decline over the past few years. Experts suggest that this trend is unlikely to change in a jiffy. So, if you are an investor who is conservative and was opting for traditional investment options, then there is a possible alternative one can consider, especially if the investment is made with a 5 to 10-year framework in mind. The proposed solution is in the form of a hybrid mutual fund. As the name indicates, a hybrid mutual fund invests in a combination of two different asset classes – debt and equity. The debt portion, aiming for stability, gets invested in fixed income instruments like government bonds, corporate bonds, debenture, etc., whereas the equity portion gets invested in shares of listed companies, which is volatile in nature but brings in high returns over long term. Such funds have been in...