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An Aggressive Hybrid Fund is required to invest in equity and equity related instruments in the range of
A{'text': '20 to 35 percent of total assets', 'label': 'A'}
B{'text': '40 to 60 percent of total assets', 'label': 'B'}
C{'text': '65 to 80 percent of total assets', 'label': 'C'}
D{'text': '80 to 95 percent of total assets', 'label': 'D'}
Answer & Solution
Correct answer: C. {'text': '65 to 80 percent of total assets', 'label': 'C'}
1. Aggressive Hybrid is an open-ended scheme investing predominantly in equity.
2. SEBI limits its equity exposure to 65 to 80 percent of total assets.
3. The balance 20 to 35 percent must sit in debt instruments.
4. A Mutual Fund may offer either an Aggressive Hybrid Fund or a Balanced Hybrid Fund, not both.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 2 "Concept and Role of a Mutual Fund", §2.2.4C(2)_
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