Indiabulls Mutual Fund has launched Indiabulls Equity Hybrid Fund, an open ended hybrid scheme that will invest largely in equity and equity-related instruments.

The new fund offer will take sector exposure under equity portfolio and duration call under debt portfolio based on Current Account Deficit levels, which is the most critical economic indicator.

The offer will be open for subscription till December 6.

Equity markets have recently been in a phase of correction and the price-to-earnings ratio of market has fallen to 25 last month (one is paying Rs 25 for Re 1 earning of the listed companies) from 28.40 in August.

The 10-year benchmark yields have increased steadily to 7.85 per cent in October from 6.94 per cent in November last year. The debt portfolio of the fund will comprise instruments that are AA+ rated and above with an active duration management.

The current valuations and yield levels provide an attractive investment opportunity to the investors, said Indiabulls Mutual Fund in a statement.

Raghav Iyengar, CEO, Indiabulls Mutual Fund said that India is at the cusp of macro-economic recovery driven by strong GDP print and all consumption data showing stability.

However, he said markets have turned volatile on rising global interest rate and oil price. In such a scenario, hybrid funds offer an opportunity for investors to ride out this volatility given the debt component which brings stability to performance and also allow exposure to equity with benefits of appreciation.

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