Complete Guide Best PPFAS Hybrid Mutual Funds in 2025
Investors in India are always seeking mutual funds that would give them both growth potential as well as stability. It is due to this reason that PPFAS Hybrid Mutual Funds, under the management of Parag Parikh Financial Advisory Services have been distinguished. All these funds are still of interest to the retail and HNI investors keen on diversifying their portfolio with a mix of equity and debt without the need to take unnecessary risks in 2025. Assuming that you have considered hybrid mutual funds of a reputable AMC, this informative guide provides all the information that you should know, such as the performance of the funds, functions, benefits, and limitations.
What is different about a Hybrid Fund in 2025?
The hybrid funds consist of portfolios designed to have a combination of stocks, bonds and even gold. This combination can be used to diversify risk and at the same time enjoy the growth potentials presented by the equity markets. Hybrid mutual funds will be attractive in a year as resilient global and Indian markets with volatility at various times may give way to hybrid funds as they offer protection in the event of losses and moderate returns.
- SEBI and AMC regulations cause them to rebalance asset allocation automatically.
- Typically provide superior risk adjusted returns to both pure equity and pure debt funds.
- Ideal in moderate-risk investors that want to build wealth and protect their capital.
How Come PPFAS Hybrid Mutual Funds Right Now?
PPFAS mutual Fund is a fund that has a restricted yet significant variety of funds with a unique approach and ethical investing practices. Their flagship product in the line of hybrid services is the PPFAS Balanced Advantage Fund. Its performance, clear portfolio, and competent team of fund management has allowed it to outshine some of its peers in 2025.
- Minimum churn of portfolios, focus on long-run value.
- Highlight on well-managed companies.
- Constant investment into local and international assets with maximum diversification.
What PPFAS Hybrid Funds Are Worth Researching in 2025
The only major hybrid fund available currently at PPFAS Mutual Fund is:
PPFAS Balanced Advantage Fund 2025
It is a dynamic assets allocation/balanced advantage fund. It varies the equity and debt base according to market valuations, and in a bid to be in the best risk-reward mix. It is particularly appropriate to investors who want to have security as well as growth.
Key Features or Highlights
- Dynamism in equity and fixed income allocation.
- International equities, predominantly the developed markets.
- Good long-term historical performance as it has been in operation since Nov 2021.
- Minimum investment - $5000 lump sum or $1000 SIP.
- It has a consistent emphasis on value investing and margin of safety.
Performance Snapshot (as of Q2 2025)
| Year | Fund Return (in percentage) | CRISIL Hybrid 50 50 Index (in percentage) |
|---|---|---|
| 2022 | 11.8 | 10.9 |
| 2023 | 13.1 | 12.2 |
| 2024 | 14.8 | 13.6 |
| 2025 YTD | 6.4 | 5.8 |
Did you know?
Such dynamic asset allocation funds are able to adjust their equity-debt ratio on a monthly basis and therefore can assist you to ride the market highs and lows with a lot less anxiety.
Comparison of PPFAS Balanced Advantage Fund to other schemes of the same nature
A real day comparison can be used to make you know the performance of PPFAS Balanced Advantage Fund compared to some other top funds of the kind, the Balanced Advantage funds.
| Fund Name | 3Y CAGR (%) | Std Dev (%) | Global Exposure | Min SIP (Rs) |
|---|---|---|---|---|
| PPFAS Balanced Advantage | 13.9 | 6.1 | Yes | 1000 |
| HDFC Balanced Advantage | 12.2 | 6.7 | No | 100 |
| ICICI Prudential BAF | 12.5 | 6.5 | No | 100 |
| Edelweiss BAF | 12.7 | 6.2 | No | 100 |
Professional judgment: The distinctive international distribution of the PPFAS Balanced Advantage Fund eases the Indian market shocks–when you desire global diversification to give additional stability.
What Are the Advantages and Disadvantages of Investing in PPFAS Hybrid Mutual Funds?
Pros
- Fund manager is well experienced and reputed in both the Indian and international markets.
- Reduced turnover and transaction cost enhance tax efficiency.
- Rebalancing of portfolio automatically according to market dynamics.
- Suited to medium to long-term financial objectives.
- Staff flexibility to generate stock and bond mix according to market stages.
Cons
- Currency risk and foreign market risk are brought about by global exposure.
- Reduced capitalization number of types of funds in PPFAS hybrid space (there is currently only one type of fund).
- Not the best to be used by investors with fixed returns or very low volatility.
- Even when there are severe bear markets, equity component may cause moderate losses.
The major reasons that should be considered prior to investment in PPFAS Hybrid Funds
- The minimum investment horizon is preferably 3-5 years.
- Know the process of dynamic allocation; returns are not the same over the short run.
- Keep in mind the risk appetite since hybrid funds are not low-risk products.
- Diligently examine the investing philosophy and record of the fund manager.
People Also Ask
Q. Should first time investors make use of hybrid funds?
A. Although these are safer than pure equity, moderate risks are involved. Appropriate to timid investors, but not to those desiring a guaranteed yield.
PFAS Hybrid Mutual Funds Taxation in 2025
Balanced advantage funds such as PPFAS are taxed as equity mutual funds when their allocation to equity takes the form of the average of 65 percent or more. This means:
- Gain taxed in 10 percent (LTCG exceeding 1 lakh per financial year)
- Gains on shorter holding period taxed at 15 percent as STCG.
- Income taxable as dividend payment at a hands of the investor.
Did you know?
Most investors of the PPFAS funds use the growth option, which simplifies the process of tax planning in the long-term view of making investment.
Who are the Investors of PPFAS Hybrid Funds?
- Those investors wishing to make more than the traditional fixed deposit, but can accept a degree of volatility.
- The ones who are aiming at both the capital growth and income within the medium term.
- The retirees who would like to withdraw periodically with growth benefits, through SWP.
- Individuals that prefer a conservative, low-churn, research-intensive mutual fund.
People Also Ask
Q. Is it possible to SIP in PPFAS hybrid funds?
A. Yes, SIP investments begin as low as Rs 1000 per month, and thus it can be used by the young professionals and small investors.
Investment in PPFAS Hybrid Funds in 2025
- Via the official PPFAS Mutual Fund site.
- Registered online mutual funds investment portals or mobile applications.
- Paperless transactions are also supported by demat accounts which are linked with large brokers.
- Offline investment through physical form as entered at the PPFAS offices or Karvy/CAMS.
Do not forget to connect your PAN, KYC and bank details when making your first SIP or lump sum investment.
PFW Advantage Fund PPFAS: The Way it Allocates the Assets
Its fund normally has an equity exposure of between 65-80 percent (domestic and foreign stocks) where the balance is in the form of debt. When equity markets appear to be costly, the investment in non-risky assets is made. This is to prevent a sharp swirling of portfolio between the scheme and protect the wealth of investors in corrections.
Expert insight
The international portfolio primarily comprises of consumer and technology stocks located in the US that offer you a hedge against the weakening of the INR.
People Also Ask
Q. What is the cost-to-assets ratio of PPFAS hybrid fund?
A. By 2025, the ratio of costs on the direct plan will be approximately 0.7 percent–one of the lowest in the balanced advantage category.
TLDR or Quick Recap
- The primary hybrid fund in 2025 that PPFAS Mutual Fund provides is PPFAS Balanced Advantage Fund.
- Appropriate to investors that have the objective of growing on a steady pace, reduction of risks, and diversification of the world.
- Dynamic asset allocation protects against significant fluctuations in the market but not riskless.
- Good long-term performance, low turnover of portfolio and low cost ratio.
- SIPs that can be invested in with an initial amount of as low as 1000 monthly.
- Take time to think of your risk and investment horizon and then leap.
People Also Ask - FAQs
Q1. Is PPFAS a safe fund house in 2025?
A1. PPFAS has a history of making good decisions when it comes to investing, transparency and ethical practices hence it is one of the most reliable mutual fund houses in India.
Q2. What happens to PPFAS hybrid fund when markets crash?
A2. The balanced advantage strategy enables the fund to shift more towards safe assets in turbulent times and hence draws downs are minimized in contrast to the pure equity funds.
Q3. Are Indian investors risky when they are exposed to global equity?
A3. Not necessarily–yes, there is some exchange risk and regulatory risk, but global exposure can help you lessen your reliance on Indian markets and diversify your portfolio.
Q4. Is it possible to invest in PPFAS Mutual Fund hybrid schemes in India by NRI?
A4. Yes, NRI of select countries (except USA/Canada) can make investments according to the existing rules of PPFAS.
Q5. Better between PPFAS Balanced Advantage Fund and their Flexi Cap Fund?
A5. The Balanced Advantage Fund is more appropriate to the requirements of the investor who requires more stability whereas the Flexi Cap Fund is suitable to the investor who requires more equity exposure and willing to take more risk.
Q6. What is special about the approach of PPFAS to hybrid funds?
A6. The fact that it has been concentrating on global stocks and value investing, low expense and low churn make it stand out of most other AMCs.
Sources
- PPFAS Mutual Fund Web Site.
- Value Research Online PPFAS Fund Pages.
- SEBI Hybrid mutual funds frequently asked questions.
- Moneycontrol PPFAS Hybrid Schemes.
