The best HDFC Hybrid Mutual Funds in 2025 - Complete Guide
Considering investment in hybrid mutual funds? HDFC Mutual Fund gives a variety of hybrid funds which give an exposure of both equity and debt. In 2025, they will continue to appeal to investors who seek a moderate risk with an opportunity to have a higher payoff than fixed income products. This paper discusses the best HDFC hybrid mutual funds, their characteristics, and their recent performance as well as all you need to know to make the correct choice.
What Do HDFC Hybrid Mutual Funds represent?
HDFC hybrid mutual funds invest in a combination of both equity shares and fixed income securities. This is to avoid excessive risk and reward through investing in various asset classes. These funds are normally selected by conservative to moderate investors who seek stability, a moderate growth, and regular income. Fund managers varying allocations in response to market conditions in order to maximise returns. Being among the largest AMC in India, HDFC has a good track record and a long experienced management of their range of hybrid funds.
Did you know? Balanced funds also refer to hybrid funds. SEBI classifies them into aggressive, conservative, balanced advantage and arbitrage type in order to make them easy to understand by investors.
The Reason to Review HDFC Hybrid Mutual Funds in 2025?
- HDFC Mutual Fund is reputed to have an established risk management and decades of experience amongst the team members.
- Such funds aid in lessening volatility and stabilizing portfolios even in the unpredictable market.
- The investors enjoy the advantage of both equity market development as well as the constant returns of the debt instruments.
Key Highlights
- Several types of funds such as balanced advantage, aggressive hybrid and conservative hybrid.
- Some funds have dynamic asset allocation.
- Appropriate to medium and long term objectives such as house purchase, education of children or building wealth.
- Frequent dividend options on offer.
What are the top HDFC Hybrid Funds in 2025?
The following are some of the best-performing and highest performing HDFC hybrid funds, going by the latest returns, consistency, and risk management:
HDFC Balanced Advantage fund: To Invest or Not?
The flagship dynamic asset allocation fund that is aimed at all kinds of investors is HDFC Balanced Advantage Fund.
Key Features
- Invests both in equity and debt sticking to the ratio depending on the market trends.
- Deploys hedging in fluctuating markets to reduce the losses.
- Has paid high returns with relatively low risk as compared to pure equity funds.
Pros
- Being managed actively by seasoned managers.
- It is less risky because of flexible allocation.
- Reduced drawdown with severe corrections.
Cons
- When there is a bull run, returns could fall behind because some part of the portfolio will be in debt.
- A little bit expensive relative to passive hybrid funds.
The performance Snapshot (FY 2025) does not show significant indicators of improved performance, thus it is evident that the company remains in the maturity phase.<|human|>Performance Snapshot (as of March 2025) The performance Snapshot (FY 2025) does not reveal significant indicators of the improved performance, therefore it is obvious that the company is at the maturity stage.
Details
| 1 Year | 3 Year CAGR | 5 year CAGR | AUM (Rs crore) | |
|---|---|---|---|---|
| Return | 15.2% | 13.6% | 12.9% | 57,210 |
| Expense ratio (Direct) | 0.72% | NA | NA | NA |
Expert Analysis: First time mutual fund investors would use Balanced Advantage Funds, particularly those who are not certain of the timing of the market.
HDFC Hybrid Equity Fund: Is it suitable to you?
This fund holds approximately 65-80 percent of the fund in equities and the remaining on debts.
Key Features
- Aggressive hybrid fund that is suitable to moderate to high risk appetite people.
- Varied with large and middle cap stocks.
- Intended to bring in more returns than the traditional debt funds.
Pros
- Capital appreciation potential.
- Rebalancing will make sure that the risk is managed.
- Increased capital compared to pure debt funds in general.
Cons
- Not appropriate to those investors who require low risk.
- Return can be affected by short term volatility.
Three-Year Returns Table
| Year | Fund return | category average. |
|---|---|---|
| 2022 | 15.1% | 14.7% |
| 2023 | 17.6% | 16.8% |
| 2024 | 13.9% | 12.3% |
HDFC Multi Asset Fund: What Does It Diversify?
This fund will invest not only in equities and in debt: it will invest also in gold exchange traded funds (ETFs).
Highlights
- 3/4 45 to 70 percent and 2/3 20 to 30 percent and 20 percent gold ETFs.
- Diversifies the effect of a decline in performance in a single asset.
- Possible stability in economic down-turns.
Pros
- Gold diversification aids in dampening losses in the downward trend of equity.
- Appropriate to investors who would want to hedge against inflation.
Cons
- The returns might be less predictable because of complex asset mix.
- Not best suited to pure equity or a debt exposure.
People also ask
Q. Is it possible that I can make a loss in HDFC Hybrid Mutual Funds?
A. Admittedly, each and every mutual fund is associated with market risks, yet hybrid funds are meant to mitigate losses through diversification and asset allocation strategies.
Did you know? SEBI has now become more stringent on the maximum amount that can be invested in each type of asset of different hybrid funds and this improved the security of the investors.
Comparison of HDFC Hybrid Mutual Funds.
| Fund Name | Main Category | 3 Years return | Min SIP (Rs) | AUM(crore) | Suitable For. |
|---|---|---|---|---|---|
| HDFC Balanced Advantage | Dynamic Asset Alloc. | 13.6% | 100 | 57,210 | Moderately conservative. |
| HDFC Hybrid Equity | Aggressive Hybrid | 16.4 per cent | 100 | 25,430 | Moderate to high risk takers. |
| Multi Asset HDFC | Multi Asset -Multi-asset | 12.1% | 500 | 4,510 | Diversified asset seekers. |
| HDFC Children Gift fund | Solution Oriented | 8.6% | 500 | 2,170 | Child objectives, long term. |
As of February 2025, direct plan.
What Are the Major Strengths and Weaknesses?
Advantages
- Stability and growth through asset class mix.
- Less risk than pure equity schemes.
- Reoccurring rebalancing and professional management.
- Ideal in case of a beginner and a conservative investor.
Disadvantages
- Moderate returns, might not outperform pure equities when they are on a run.
- There are exit load, or tax implications in case of early redemption.
- In dynamic or multi asset funds, expense ratios may be increased.
Expert Insight: The trend with a balanced approach to hybrid strategies is expected to continue in 2025 with uncertainties at the global market to reduce market volatility in the minds of Indian retail investors.
In Which Consumers to invest in these HDFC Hybrid Mutual Funds?
- First step by first movers of FDs and savings.
- Retirees who want to have a normal income and principal security.
- Medium term financial investors 3-7 years.
- Individuals who are constructing a long term portfolio but desire less stress in the market.
People also ask
Q. Do hybrid funds attract different taxes in India?
A. Yes, it is taxed based on the asset allocation of the fund. The taxes will resemble equity funds (low long term capital gains tax) in case the equity allocation remains greater than 65 percent. Otherwise, taxes are imposed on debt funds.
What is HDFC Hybrid funds 2025?
The simplest way to start a SIP is to begin with it. The HDFC Mutual Fund online platform can be used, numerous third party applications, or even visit an HDFC branch. All you have to do is to have your KYC and a bank account connected. The selection of the appropriate hybrid fund should be based on risk-taking, investment duration and clarity of goals.
- Choose what you would like to achieve: Growth, regular income, or diversification.
- Choose the type of fund: Aggressive, balanced, multi-asset or conservative.
- Begin with SIP or lump sum: SIPs will assist in discipline and even out volatility.
Did you know? Over the past 10 years, HDFC Balanced Advantage Fund has performed better than most of its peers during the good and bad market periods.
What are the Major Issues to Compare Before Selecting a Fund?
- Multi-period returns (not annual returns).
- Diversification of portfolio and sectors.
- Expense ratio and AUM size
- Experience in track record and fund manager.
- Such risk ratios as standard deviation and drawdown.
| Par. | HDFC Balanced Advantage | HDFC Hybrid Equity | HDFC Multi Asset. |
|---|---|---|---|
| Expense Ratio | 0.72 percent | 0.89 percent | 1.07 percent |
| 5 Yr Return | 12.9 percent | 14.8 percent | 12.1 percent |
| Risk (Std Dev.) | Moderate | High | Low to moderate. |
| Minimum SIP | Rs 100 | Rs 100 | Rs 500 |
Short Quick Recap: TL;DR
- HDFC hybrid mutual funds is an equity and debt balanced investment.
- The best ones are HDFC Balanced Advantage, Hybrid Equity and Multi Asset.
- Appropriate in the case of medium risk investors, the novice and those who want stability.
- The returns are usually comparatively steady with reduced volatility compared to pure equity.
- Investments should always be checked by looking at latest performance, track record of managers and suitability of the fund.
People Also Ask: FAQs
Q. Which is the best HDFC hybrid fund with the highest return?
A. HDFC Hybrid Equity fund has the best record of returns since the equity exposure is greater, however, risk is also higher than balanced or multi asset funds.
Q. Is HDFC Balanced Advantage Fund worth a 5 year target?
A. Yes, it has a dynamic allocation plan, which allows mitigating the risks and achieving a decent growth within 5 years. It is an option that is favored by medium term investors.
Q. Are HDFC hybrid funds safe?
A. Hybrid funds have market-related risks, just as all mutual funds, although they are usually thought to be more secure than pure equity schemes, through diversification.
Q. Is it possible to earn monthly on HDFC hybrid funds?
A. Other hybrid funds provide monthly income plans that are paid out on a regular basis, but cannot be guaranteed and are based on the performance of funds.
Q. But what HDFC hybrid fund would be appropriate to me?
A. Evaluate your risk-taking, investment time frame and financial objectives. Aggressive fits the moderate to high-risk types; balanced fits the conservative to moderate types; multi asset fits those who want to be diversified.
Sources
- HDFC mutuals fund official site.
- SEBI guidelines
- Morningstar India
