Use hybrid funds to tide over market volatility, say fund managers

The data from Value Research shows that conservative hybrid funds are down nearly 1.5 per cent; equity savings funds are down 1.9 per cent

Monetary tightening by the US Federal Reserve and fears of global recession have led to a sharp fall in equities and rise in bond yields. Investors believe the market will continue to see turbulence as central banks are in the beginning of a rate-hike cycle.

Given the change in market dynamics, mutual fund (MF) players are advising investors to opt for hybrid funds — a low volatile option, compared to pure-play equity funds.

In the past three months, large-cap funds are down 5.57 per cent on average. Mid-cap and small-cap funds have given negative returns of 4 per cent and 5.18 per