An Aggressive Hybrid Fund is required to invest in equity and equity related instruments in the range of
A20 to 35 percent of total assets
B40 to 60 percent of total assets
C65 to 80 percent of total assets
D80 to 95 percent of total assets
Answer & Solution
Correct answer: C. 65 to 80 percent of total assets
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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