Best ICICI Prudential Hybrid Mutual Funds - 2025 Guide
Another of the best asset management companies in India is the ICICI Prudential Mutual Fund that provides a variety of hybrid mutual funds. Hybrid mutual fund is a combination of equity and debt securities to create a balance between growth and stability thus becoming a likely investment to Indian investors in the year 2025. The objectives of these funds include the provision of capital gains with a limited risk and hence would suit both cautious and moderate investors that seek stable returns.
The ICICI Prudential Hybrid Mutual Funds are securities that an investor can have confidence in diversifying his or her portfolio since they offer the possibility of high returns that equity imposes, but also carry the low risk characteristic of debt securities. These hybrid schemes are customized to various financial objectives and risk tastes whether it is the wealth creation, pension planning, or the everyday income.
Why Would You Want to Think About ICICI Prudential Hybrid Mutual Funds in 2025?
Due to the uncertainties in the stock markets of India and unpredictable interest rates in 2025, diversification is essential. ICICI Prudential has hybrid funds that ensure a balanced approach. They automatically take realizations of portfolios based on the market dynamics, therefore sparing you the hassle of having to actively manage the investments.
The Following Features Are Beneficial to the Investors:
- Both equity and debt assets are exposed to in one fund.
- Trustworthy AMC professional fund management.
- Flexibility to select funds according to the equity debt allocation according to the risk profile.
The Main Characteristics of the Best ICICI Prudential Hybrid Mutual Funds
- A combination of equity, debt and in some cases gold or arbitrage.
- Assets based efficient tax structure.
- Frequent dividend and revenue possibilities (SWP options).
- Professionally managed funds.
- Apposite in both long term and short term passive growth.
People Also Ask
Do first time investors like ICICI Prudential Hybrid Funds?
Indeed, these hybrid funds are the best when the first time investors are involved because they are moderately risky and balanced.
Did You Know?
ICICI Prudential Balanced Advantage Fund is one of the most popular in the hybrid mutual fund category that has continued to record inflows even at the turbulent market periods.
What Are the Best Performing ICICI Prudential Hybrid Mutual Funds in 2025?
The choice of the best hybrid funds is based on risk profile, investment period, and objectives. The 2025 best ICICI Prudential hybrid mutual fund is considered to be the following:
ICICI Prudential Balanced Advantage Fund
It is the flagship ICICI Prudential hybrid mutual fund that adopts dynamic asset allocation strategy which switches between the equity and debt based on the prevailing market conditions.
Key Highlights
- Rebalancing between debt and equity dynamically.
- Low to moderate risk profile.
- Good steady returns and downside coverage.
Table 2 (As of March 2025) Performance
| Fund Name | 1 yr Return | 3 yr CAGR | 5 yr CAGR | Expense Ratio | Risk Level |
|---|---|---|---|---|---|
| ICICI Prudential Balanced Advantage | 21.4% | 14.3% | 13.2% | 1.02% | Moderate |
Pros
- The mechanism of automatic allocation of assets minimizes timing requirements of investors.
- 10-15 years of experience, low volatility.
- Appropriate to new investors.
Cons
- Bull markets may favor multi cap funds which may trail returns.
- An inappropriate match to aggressive investors.
ICICI Prudential Equity and Debt Fund (The Previous Balanced Fund)
A traditional balanced hybrid mutual fund that has more equity conviction but with a substantial consistence of debts.
Key Features
- Approximately 65 percent equity and 35 percent debt.
- Equity taxation benefits.
- Perfect in the long run wealth generation.
Performance Table (As of April 2026)
| Fund Name | 1 Years Return | 3 Years CAGR | 5 Years CAGR | Expense Ratio | Risk Level |
|---|---|---|---|---|---|
| ICICI Pru Equity and Debt | 22.8% | 16.9% | 15.7% | 1.15% | Moderate |
Pros
- Equity geared towards greater capital gains.
- Reduced volatility than pure equity funds.
- Stable historical performance.
Cons
- Not the best choice in terms of periodic revenue.
- Moderately more risk as compared to conservative hybrid funds.
People Also Ask
How should ICICI Prudential Balanced Advantage Fund and Equity and Debt Fund differ?
Currently, Balanced Advantage Fund has dynamic asset allocation whereas Equity and Debt Fund has fixed equity debt ratio.
Expert Insight
Financial planners suggest that you should update your allocation regularly in your hybrid fund each year to suit your changing objectives and life cycle.
ICICI Prudential Multi Asset Fund
The investments in this fund are done in three major asset classes, which include equity, debt, and gold. The diversification is used to cushion against underperformance in one asset class.
Key Features
- Invests in equity, fixed income and commodities (including gold ETFs).
- Interests in consistent returns and low drawdowns.
- Appropriate when the investor wants to have a complete diversification.
Table (As of March 2025) Performance
| Fund Name | 1 Yr Return | 3 Yr CAGR | 5 Yr CAGR | Expense Ratio | Risk Level |
|---|---|---|---|---|---|
| ICICI Pru Multi Asset | 20.7% | 15.1% | 14.2% | 1.18% | Moderate |
Pros
- Beyond equity and debt diversification.
- Manages unstable changes in the market.
- Rebalancing to sustain allocation.
Cons
- Some additional costs because of inclusion of commodities.
- May perform poorly when there is a strong trend in either pure equity or debt funds.
ICICI Prudential Hybrid Fund - Aggressive/Conservative
Other funds offered by ICICI Prudential with a conservative or aggressive tilt in the hybrid segment include ICICI Prudential Aggressive Hybrid Fund and ICICI Prudential Regular Savings Fund. These enable investors to micro manage exposure according to risk tolerance.
Key Features
- Aggressive Hybrid: 65-80 percent equity, to growth seekers.
- Conservative Hybrid: 15-25 percent equity, which is appropriate with senior citizens and risk averse investors.
As of March 2025, Performance Table
| Name of Fund | 1 Yr Return | 3 yr CAGR | 5 yr CAGR | Expense Ratio | Risk Level |
|---|---|---|---|---|---|
| ICICI Pru Aggressive Hybrid | 18.50% | 13.80% | 13.40% | 1.21% | Moderately High |
| ICICI Pru Regular Savings (Conservative) | 9.6% | 8.3% | 8.4% | 1.11% | Low |
Pros
- The ability to select equity proportion.
- Both growth and income seeker options available.
Cons
- Aggressive funds are more risky on equity.
- The returns of conservative funds might not be ahead of inflation.
People Also Ask
What ICICI hybrid fund is the best one to be taken by senior citizens?
ICICI Prudential Regular Savings Fund is applicable to elderly people and individuals who want low risk high income.
Did You Know?
The defensive nature may be seen through the fact that hybrid funds that had greater proportion of debt were not as affected when the market made corrections at the end of 2024.
Top ICICI Prudential Hybrid Funds (2025) Comparison
| Name of Fund | Equity Percentage | Debt Percentage | 2024 Return | Expense Ratio | Appropriateness |
|---|---|---|---|---|---|
| Balanced Advantage Fund | 30-80 | 20-70 | 21.4% | 1.02% | Majority of investors |
| Equity and Debt Fund | 60-80 | 20-40 | 22.8% | 1.15% | Long term growth |
| Multi Asset Fund | 65-70 (Equity gold) | 30-35 | 20.7% | 1.18% | Diversification |
| Aggressive Hybrid | 65-80 | 20-35 | 18.5% | 1.21% | Young professionals |
| Regular Savings (Conservative) | 15-25 | 75-85 | 9.6% | 1.11% | Retirees, risk averse |
Leverages of Investing in ICICI Prudential Hybrid Mutual Funds
- Strict use of assets in assigning the allocation of assets in equity, debt and at times in gold as a diversification tool.
- Fund management which is professionally and research driven.
- Less volatile compared to pure equity funds.
- SIP and SWP in case of flexible investing and withdrawals.
Weaknesses of ICICI Prudential Hybrid Mutual Funds
- Reduced returns in good bull markets relative to pure equity funds.
- There are hybrid funds with a high expense ratio.
- Not maybe aggressive or all conservative investors.
- Changes in portfolio allocation and tax should be reviewed periodically.
Expert Insight
Never invest without evaluating the performance of the funds against that of their peers and against indexes. The historical performance is not a predictor of the returns in future.
What Is the Best ICICI Prudential Hybrid Mutual Fund to Do?
- Evaluate the nature of your risk profile (conservative, moderate, aggressive).
- Establish your investment time horizon (short, medium or long term).
- Determine whether you need regular income or growth.
- Examine performance, historical consistency of funds and cost ratios.
- Collect asset allocation in terms of tax.
People Also Ask
Better than lump sum in hybrid mutual funds; is SIP better?
SIP is usually used to do rupee cost averaging and is believed to be safer in volatile markets. Low volatility times may be amenable to lump sum.
Quick Recap
- ICICI Prudential Balanced Advantage Fund and Equity and Debt Fund will always be the first priority of most investors in 2025.
- Additional diversification is provided by Multi Asset Fund.
- The conservative or aggressive hybrid funds suit your own level of risk.
- Always scrutinize recent performance, experience of fund managers and align them with your financial objectives.
TLDR
ICICI Prudential Hybrid Mutual Funds are an effective solution that can be used to combine equity and debt investments to achieve balanced growth and stability in 2025. Such funds as Equity and Debt Fund and ICICI Prudential Balanced Advantage Fund are the top performers. Determine risk appetite, investment timeline and requirement and then select fund.
People Also Ask (FAQs)
Q: What is the most suitable ICICI Prudential Hybrid Fund to use within a two year objective?
In case of a short term two year objective, ICICI Prudential Regular Savings Fund or any conservative hybrid with greater proportion of debt would be appropriate since the risk involved is reduced.
Q: What are the taxation of ICICI hybrid funds in 2025?
Taxation varies according to the asset allocation at the basis. The ones that are equity dominated in nature enjoy equity taxation, the others adhere to debt taxation rules. Incorporate new rules that may be found in the new tax slabs.
Q: Is it possible to invest in ICICI Prudential hybrid funds through SIP?
True, with most ICICI hybrid plans, one can begin SIP with as low as Rs. 100 per month.
Q: Are these hybrid funds a sure way of securing capital?
None of the mutual funds can guarantee the safety of the capital, but hybrid funds are expected to reduce the downside risk to a minimum through diversification.
Q: Is it better to follow NAV or returns when choosing a fund?
Consistency and past returns are important when selecting mutual funds than NAV is.
Sources
- ICICI Prudential Mutual Fund Official Web Site
- Value Research Online - Fund Analysis
- Mutual Fund Database India
