Bet on hybrid funds to contain portfolio volatility, suggest market experts

Inexperienced investors, in particular, should take refuge in the balanced advantage category, which invest in a mix of equity, debt and arbitrage opportunities

The Indian equity market has turned bipolar, with the Sensex (a large-cap index) up around 7 per cent year-to-date (YTD), while the BSE Mid-cap and BSE Small-cap are down around 14 and 18 per cent respectively. Many investors who entered the markets within the last one year or so and invested primarily in mid- and small-cap funds, have seen their portfolio values get eroded sharply. The outlook for the equity and debt markets are no longer as sanguine as they were in 2017. Interest rates are on the upswing in the West, prompting a withdrawal of funds by financial institutional