Best Groww Hybrid Mutual Funds A Detailed Guide till 2025
The adoption of mutual fund investment has been very fast in India, particularly through credible online platforms such as Groww. A variety of schemes such as hybrid mutual funds has also become a favorite to invest in combining risk and reward, i.e. combining equity and debt investment. In the year 2025, new and experienced investors will be seeking after the optimum Groww hybrid mutual funds to diversify their portfolio, realise consistent returns and secure capital.
This paper examines the best performing Groww hybrid mutual funds, their functioning, main characteristics, advantages and disadvantages and the reasons why they are appealing in the light of the changing market in 2025. You can also have a quick guide that will assist you to pick and invest well.
What is Groww Hybrid Mutual Funds?
Hybrid mutual funds are investments that have a combination of stocks (equity), debts (bonds, deposits), and will at times be diversified with gold (or other assets). They are aimed at balancing the growth potential and stability, with providing reasonable returns and enabling the risk exposure management.
Groww offers investors hundreds of such schemes with different equity-debt ratios. The appropriate ratio is determined by the objective of the fund, the risk appetite and the market prognosis.
The kinds of Hybrid mutual funds available on Groww
- Equity Oriented Hybrid Funds (Greater equity, greater growth potential)
- Debt Oriented Hybrid Funds (greater level of debt, greater stability)
- Balanced Hybrid Funds (almost equal equity and debt)
- Dynamic Asset Allocation Funds (change mix in accordance with market scenario)
- Arbitrage Funds (take advantage of lower risk arbitrage opportunities)
- Multi Asset Allocation Funds (bring together over two classes of assets)
People also ask
What is so special about hybrid mutual funds?
The only difference between hybrid funds and other funds is that they combine safety of debt with growth opportunity of equities to achieve smoother long-term returns.
The Reason to think about Hybrid Mutual Funds in 2025
In the year 2025, the markets in India will be exposed to global uncertainties, geopolitical dynamics and reformulated domestic interest rate policies. Hybrid funds have the potential of hedging portfolios against shocks and allowing capital gains.
Key Features or Highlights
- Professional fund managers will change the allocation of assets depending on the market.
- Equity portion is growth in the long-term; debt component insures volatility.
- Frequently pay dividends regularly.
- Rebalancing of the portfolio automatically to minimize emotional investing.
- Appropriate in medium decision and long term investment objectives.
Did you know?
As AMFI observed, hybrid mutual funds registered some of the highest net inflows in 2024 indicating more allocation by risk-averse investors.
The way of how to analyze Best Groww Hybrid Mutual Funds
The best hybrid fund to pick on Groww cannot be done by merely looking at previous returns. Take into account the following important requirements:
- Last 1 year, 3 years, 5 years- past performance.
- Not a one-year-good year, consistency in returns.
- Share charge that impacts on net returns.
- Debt holdings and credit quality.
- Equity portfolio combination: bluechip, midcaps, industry selection.
- Performance of fund manager and reputation of AMC.
- AUM size, which is too small or excessive, can experience problems.
Top Hybrid Funds at Groww (As of Jan 2025): Comparison Table of a Sample
| Fund Name | 1Y (%) Return | 3Y (%) Return | Expense Ratio (%) | Risk Level | Equity Allocation (%) | Debt Allocation (%) |
|---|---|---|---|---|---|---|
| HDFC Hybrid Equity Fund | 22.84 | 16.52 | 1.08 | Moderate-High | 68 | 32 |
| Mirae Asset Hybrid Equity Fund | 20.2 | 15.1 | 0.86 | Moderate | 72 | 28 |
| ICICI Prudential Equity and Debt | 21.5 | 16.2 | 1.11 | Moderate-High | 75 | 25 |
| SBI Equity Hybrid Fund | 19.9 | 14.7 | 1.13 | Moderate | 70 | 30 |
| Axis Balanced Advantage Fund | 17.2 | 12.8 | 0.98 | Dynamic | Varies | Varies |
People also ask
Can the hybrid funds on Groww be tracked easily?
Yes, Groww allows you to easily monitor, redeem and review your investments on the hybrid fund by the use of an intuitive dashboard.
Advantages and disadvantages of Hybrid Mutual funds to Indian investors
Realizing benefits and drawbacks will assist in setting achievable expectations.
Pros
- Less volatile investment returns than pure equity plans.
- Personalised asset mixes are appropriate to conservative moderate risk-takers.
- Reduced volatility attracts novice investors or goal-near investors.
- Debt share creates stabilization and liquidity of emergencies.
Cons
- Bull runs may not yield equal returns to pure equity schemes.
- Interest rates may change debt investments.
- May continue to have market-dependent changes, rather than assured returns.
- The expense ratios may exceed plain index funds.
Expert’s insight
The hybrid funds may also serve as a foundation in a portfolio construction particularly to individuals who are between 3 to 10 years old and are saving towards wedding, school or college, and retirement.
Who will pick Groww Hybrid Mutual Funds in 2025
Hybrid mutual funds are suitable in:
- Investors who are first-time and want to be exposed to equities and bonds.
- Not very risky moderate growth goal based savers.
- Established investors spreading investments in order to protect volatility.
- Those retiring with less risk of capital.
When Hybrid Funds are not suitable
- To investors who seek maximum returns with or without risk (with prodigal capital favored)
- In cases of short-term (less than 1 year) objectives (liquid/debt funds)
People also ask
Are hybrid funds tax advantaged, such as ELSS?
Not all hybrid funds provide the same tax advantage of ELSS schemes which is Sec 80C. The taxation is determined by the equity and debt ratio.
The best Hybrid Mutual Funds to monitor in Groww in 2025
A number of schemes are performing well in Groww, owing to their performance, quality of management and their wise asset allocation.
Best performing Hybrid Mutual Funds on Groww (2025 Edition)
HDFC Hybrid Equity Fund
- Stable returns and long-term fund manager are noted.
- Diverse combination of bluechips and quality debt.
- Always in the top of categories.
Mirae Asset Hybrid Equity Fund
- Popular due to low cost ratios.
- Equal treatment of equity selection.
- Recent performance in diverse market stages has been good.
ICICI Prudential Equity and Debt fund
- Flexible asset allocation
- Qualified management team.
- Uses dynamic market views.
SBI Equity Hybrid Fund
- Huge AUM and well-established track record.
- Robust risk management.
Axis Balanced Advantage Fund
- Adjustment in equity-debt ratio dynamically.
- Appropriate to various market conditions.
- Some investors favour conservative approach.
Did you know?
Some of them have attractive SWP (Systematic Withdrawal Plan) features which helps investors who want monthly payout.
Investing in Hybrid funds with Groww: How to Start
Groww simplifies the process of accessing the hybrid mutual funds:
- Ensure and fill KYC in Groww app or website.
- Desired categories of hybrid funds searched and shortlisted.
- Compare past portfolios, risk measures and historic returns.
- Select systematized investment plan (SIP) or lumpsum investment.
- Track performance and regular updates using Groww dashboard.
- Start-up capital can be as small as ₹100.
- Anytime units can be changed, redeemed or paused by the investor.
People also ask
Does a hybrid fund have exit loads?
Yes, the majority of hybrid funds impose exit load (typically 1 percent) when redeemed in the first year of 12 months. Fund-specific details must be checked always prior to investment.
Guidelines To Select the best Hybrid Fund on Groww
To maximize on hybrid funds, one must be clever on their choice:
- Pre-search having a clear understanding of financial goals, time and risk appetite.
- Like funds which have at least 5 years of proven performance.
- See current portfolio composition to diversify the portfolio with regard to sector.
- Look at experience of fund manager–consistency.
- Do not select on 1-year returns and make decisions that are volatile.
- Reduced cost ratios are also able to increase long term compounding.
Expert’s insight
Diversification is key. In some cases, the allocation between two or three hybrid funds with complementary styles (one of them being aggressive) can enhance the risk reward profile.
Comparison between Hybrid Funds and other categories of mutual funds
| Characteristic | Hybrid Funds | Equity Funds | Debt Funds |
|---|---|---|---|
| Level of Risk | Moderate | High | Low to Moderate |
| Return Potential | High Moderate | High | Low to Moderate |
| Asset Allocation | Equity and Debt | Mostly Equity | Mostly Debt |
| Appropriate to | Medium term objectives | Long term growth | Short-term stability |
| Volatility | Balanced | Higher | Lowest |
Frequently Asked Questions
The taxation of hybrid mutual funds in 2025
The equity-oriented hybrid funds are treated as equity funds — 15 percent of the short term capital gains (less than 1 year), 10 percent LTCG (over 1 year and above ₹1 lakh). Short term, the debt oriented funds are taxed under the slabs of income tax and 20 percent with indexation under long term.
Is it possible to invest in hybrid funds on Groww by NRIs?
Yes, NRIs are allowed to make investment on the basis of compliance and KYC. Some fund houses can impose limits on NRIs of USA or Canada. Check with Groww to allow.
What frequency should I have in checking my hybrid fund investments?
Analyze your investments at least bi-annually. Change SIPs or switch funds when performance is underperforming with your goals or when you have changed your goals over a 12-18 months period.
Did you know?
Hybrid funds constitute an almost 18 percent portion of aggregate domestic mutual funds AUM as of 2025, which demonstrates the wide appeal they have to investors.
TLDR or Quick Recap
- Groww Hybrid mutual funds are a combination of equity and debt, which is appropriate to medium to long-term Indian investors to achieve moderate growth.
- The best of 2025 would be HDFC Hybrid Equity Fund, Mirae Asset Hybrid, and ICICI Prudential Equity and Debt.
- Select schemes according to diversification, fund manager history and according to risk and time horizon.
- The hybrid funds are not risk-averse but equally balanced to the pure equity or debt schemes.
People Also Ask
Q: Which is the safest hybrid mutual fund in Groww?
A: Debt based hybrid funds have the least risk and the least potential returns as compared to the higher equity based schemes.
Q: Can I invest in mutual funds of hybrid 1 year?
A: The design of hybrid funds is medium-long-term (3 and above). In 1 year, lower risk can be considered liquid or ultra short term debt funds.
Q: What is the projected 2025 returns of hybrid funds?
A: According to the current market tendencies, the ratio of annual returns is between 10-16 percent, which may depend upon market circumstances.
Q: Will hybrid funds be superior to fixed deposits in the year 2025?
A: The hybrid funds can give superior inflation beating returns compared to FDs but are riskier and market linked returns.
Q: Which one is better between SIP and one time investment with hybrid funds?
A: SIP minimizes market timing risk and is generally advised to the majority of the investors. Lumpsum is applicable to individuals who have a big investment surplus and have a good market perception.
Sources
- Groww - Mutual Funds
- AMFI Data
- MoneyControl Funds Section
