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Types of schemes, and picking one ยท 6 min

Hybrid and the rest

Mixes, ETFs and gold

Beyond equity and debt sit the mixes and the specialists. You do not need every label, just what each one is for and how it differs from a plain fund.

This lesson teaches a concept for the NISM Series V-A exam. It is education, not financial advice.

  1. 1

    Hybrid funds blend equity and debt in set proportions, from conservative to aggressive.

  2. 2

    A balanced advantage fund shifts between equity and debt as markets move.

  3. 3

    An ETF is an index fund that trades on the exchange like a share.

  4. 4

    A fund of funds invests in other funds; gold funds track the price of gold.

Rupee example

A conservative hybrid leans on debt with a little equity; an aggressive hybrid does the opposite.

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Practice

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Real exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.

Answer by voice
Tap the mic and say A, B, C or D. Typing is optional.

A hybrid fund holds:

Hybrid means a set blend of equity and debt, tuned from conservative to aggressive.
A single asset class is not a hybrid.

An ETF is best described as:

An ETF tracks an index but trades on the exchange like a share, through the day.
It is not a bond, an account or a tax.

A fund of funds invests in:

A fund of funds holds units of other funds, not securities directly.
It is one layer up from the underlying funds.

A balanced advantage fund:

It moves its equity and debt mix dynamically as conditions change.
It does not guarantee returns or sit in cash.

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