What are Hybrid PMS Strategies?
Hybrid PMS strategies invest in both equity and fixed income instruments within a single portfolio. The allocation ratio varies by strategy — some are aggressive (70% equity), others balanced (50:50), and some conservative (30% equity). Unlike mutual fund hybrid categories with fixed mandates, PMS hybrid strategies can dynamically shift allocation based on market valuations.
- One-Stop Solution: Single PMS managing your entire investment portfolio
- Dynamic Rebalancing: Equity allocation increased when markets are cheap; reduced when expensive
- Risk-Managed Growth: Debt portion cushions equity drawdowns significantly
- Tax Efficient: Held in personal demat — direct bond and stock ownership
- Personalised: Asset allocation tailored to each client's risk profile and goals
Hybrid PMS Allocation Framework
How dynamic hybrid strategies adjust allocation:
- Bull Market (expensive valuations): Reduce equity to 30–40%; increase debt
- Correction (-15–20%): Increase equity to 50–60% from debt
- Bear Market (-30%+): Deploy maximum equity of 70–80% for recovery
- Yield curve monitoring: Shift between short and long duration debt based on RBI policy
- Minimum cash position: 5–10% maintained for tactical deployment opportunities