Many investors are feeling disappointed that their aggressive hybrid fund (popularly known as balanced fund) is showing negative return over the past year. Many investors were sold these products as being safer than pure equity funds. Clearly, these investors have been mis-sold the product. Aggressive hybrid funds, according to Sebi’s definition, invest 65-80 per cent of their portfolio in equities. Such a portfolio is bound to be volatile. To their credit, these funds have on average declined less than pure equity funds. Dividends, too, were bound to stop once the markets turned. Investors need to realign their expectations and ride out the downturn.