2) Conservative Hybrid –

Conservative Hybrid is a type of investment where there is higher ratio of equity to debt. Here, a larger portion of the corpus is invested in equity. Here, the equity can go up to 35 percent. An investor, who invests in Conservative Hybrid, has a higher tendency to take risks in his investments. Such investments have higher risk and higher returns. These investments are made for medium to long term periods and provide returns over a longer period of time. Here, the goal is not to have a steady income but to have a very big chunk of returns at the end of the stipulated period. Since, debts also make a significant portion of this investment, a minimum amount is also guaranteed here. However, as the investor has a big part of his money in equity, he/she must be careful in choosing the company to buy shares from.

3) Balanced Funds –

Balanced Funds has the highest amount of equity in terms of investment and can go up to 70 percent. Here, debt occupies a very small percentage of the investment, which is less than 30. This type of investment involves a very high degree of risk as majority of the investment depends upon the performance of the shares bought from the concerned company. This type of investment needs a thorough understanding and knowledge of the stock market. This type of investment should be made only after seeking the help of financial planners, analysts and market experts as they are riskier compared to the previous types of investments. Since, most of the Q3 results of major IT companies of India show good performance, investing in such companies is a good idea.