New Delhi, Aug. 20 -- Mutual funds are like departmental stores of financial products, where you generally get the option to buy various and numerous products ranging from pure equity to pure debt, including many products with a mixture of varying proportions of debt and equity. Of all these, aggressive hybrid funds, popularly known as balanced funds, as a category, are an excellent product. Let us understand the various features and suitability of aggressive hybrid funds.

Asset allocation is one of the basic fundamental principles of prudent financial planning, which advocates scientific allocation of all your investible funds into various asset classes. These asset classes include equity, debt, gold, and real estate in a broader sense,...