This Mid And Small-Cap Hybrid Fund, Ranked 1 By CRISIL, Delivered More Than 50% Return

Investing is risky, adding stock market investments could be way riskier. When you're searching for a safe and secure investing choice with low risk and decent returns, mutual funds are a fantastic place to start. Investing in hybrid funds is a good idea. Fund managers are obligated to continue investing in shares in large-size equity mutual funds. Hybrid funds, on the other hand, invest in a variety of asset classes in order to diversify the portfolio and reduce risk.

Why Hybrid Funds?

Investors believe hybrid funds to be a safer investment than equity funds since they offer better returns than traditional debt funds. Higher returns are possible when stock components are included in the portfolio. At the same time, the fund's debt component acts as a hedge against market volatility. As a result, the investor receives consistent returns rather than the complete burnout that may occur with pure stock funds. Hybrid funds are a good option for new investors who want to get a taste of the stock market. The Fund has been ranked 1 by CRISIL as of September 2021. Counting on the risk factor, it is a highly risky fund. 

BOI AXA Mid And Small Cap Equity And Debt Fund

NAV	Fund Size	Expense Ratio
Rs 25.85 (as on 19 January 2022)	Rs 370.61 Cr	1.84%

This Fund has offered a good return to investors on  Direct Plan-Growth the investment. It is a Hybrid high-yield fund that invests 80% of your money in stocks and the balance in bonds and low-risk securities. In one year, the fund returned 54% on an annualized basis and 26.15% on a daily basis. On the debit side, the Fund invests in Government of India assets, while on the equity side, it invests in equities such as TREPS, Minda Industries, APL Apollo Tubes, and Persistent System, among others. 

 

With the aim to offer investors with capital appreciation and income distribution through a portfolio of mid-and small-cap equities and equity-related assets, as well as fixed-income securities this hybrid fund is good to start SIP. However, there is no guarantee that the income will be earned, whether on a regular or irregular basis or that the Scheme's investment goals will be met.

Returns and Performance

The Fund performance and returns over the years on the Rs 10000 investments:

Period Invested for	Absolute Returns	Annualised Returns
1 Year	55.35%	55.35%
2 Year	100.54%	41.41%
3 Year	104.02%	26.78%
5 Year	147.13%	19.82%
Since Inception	158.50%	18.83%

Given how costly the stock markets have gotten, this is smart to invest in fund only through SIP. You can manage your risks by investing through a SIP. The Fund's returns on SIP of Rs 1000 are as follows over the years:

Period Invested for	Absolute Returns	Annualised Returns
1 Year	25.81%	50.77%
2 Year	63.88%	55.67%
3 Year	79.67%	41.92%
5 Year	87.41%	25.38%

Note - NAV as on 19 January 2022

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents and, Terms and conditions carefully before investing. The above-mentioned data in the article are carried forward from the money control and CRISIL. The information is purely informational. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.