Best Sundaram Hybrid Mutual Funds in 2025 - Full-Fledged Analysis
The concept of hybrid mutual funds has become one of the best investment options of Indian investors who want to achieve growth and stability. As the stock market carries a lot of uncertainty, and the necessity to have a regular income stream, hybrid funds provide the perfect solution to this problem, investing in a combination of equities and fixed-income approaches. Sundaram Mutual Fund is a renowned asset fund management firm in India, which has developed a variety of the hybrid funds to address various risk profiles and objectives. In this article, we shall examine the best Sundaram Hybrid Mutual funds as of 2025, their features, advantages and disadvantages and incorporate them into various investment strategies.
Sundaram Hybrid Mutual Funds
Hybrid mutual funds are investment funds that will be a combination of equity and debt assets in different proportions. Sundaram mutual funds offer a variety of hybrid plans which include aggressive, balanced, and conservative plans. The attraction of these funds in 2025 is attributed to the fact that it can offer predictable returns and deal with volatility. Since the Indian economy has been on a steady upward growth path despite the fluctuations experienced in the global market places, hybrid funds offer both the advantage of increase in wealth and consistent income, so that they become a favorable investment option to both new and experienced investors.
The Facts of Sundaram Hybrid Funds
- Asset diversification - combination of equity, debt and occasionally gold.
- Professional and active management of knowledgeable fund managers.
- Regular dividends and growth modes are available.
- Open-ended fund structure and flexible entry and exit.
- Long holding efficiency in taxes.
- Positively customisable risk profiles in aggressive, balanced and conservative hybrid schemes.
To whom Should Sundaram Hybrid Mutual Funds be Invested?
Hybrid funds also apply to those people who would like to strike a balance between growth and safety. They are ideal for:
- First-time investors scared of going all the way.
- Retirees and families in need of good stable monthly income.
- Post-tax efficient investors.
- The middle and long-term objective people like the education of children, marriage or creation of wealth.
Did you know?
Having been the most popular category of pure equity funds, hybrid funds have been among the top five fund categories by inflows in India since 2022.
People Also Ask
Q: Then why are Hybrid mutual funds less risky than equity funds?
A: Hybrid funds will invest a substantial percentage of debt assets that assist in buffering the capital against the fluctuations in the equity markets. The moderate risk takers are attracted to this stability.
What is the Performance of Sundaram Balanced Advantage Fund in relation to other Hybrid Schemes?
The Sundaram BAL advantage fund (Sundaram BAF) is unique in 2025, as it is a dynamic asset allocation strategy. The fund manager moves the equity and debt ratio based on the market values and the macro-economic factors. This flexibility allows investors to experience greater returns when stock markets are bullish, and reduces when the stock markets are bearish.
BP Sundaram BAF vs Sundaram Hybrid Funds (2025 Data)
| Option | Sundaram BAF | Sundaram Equity Hybrid | Sundaram Conservative Hybrid |
|---|---|---|---|
| Equity Allocation | 30-80% | 65-80% | 10-25% |
| Debt Allocation | 20-70% | 20-35% | 75-90% |
| 3-Year Annualised Returns | 12.6% | 13.2% | 7.2% |
| Minimum SIP Amount (INR) | 100 | 100 | 100 |
| Appropriate In | Agents of aggression | Agents of conservatism |
Major Strengths of Sundaram Balanced Advantage Fund
- Active securities allocation on in-house models.
- Reduced downside risk on market downwards.
- Equity, taxation (considered to be tax efficient).
- Appropriate in every cycle of the market.
Pros and Cons of Sundaram BAF
Pros:
- Auto rebalancing provides risk-adjusted returns.
- Reduced volatility than pure equity funds.
- Tax advantages like equity funds.
Cons:
- May does not do well in bull run in multi cap equity funds.
- Depending on the accuracy of asset allocation model, returns rely on it.
The Wisdom of Experts:
The 2025 Sundaram Mutual Fund annual review revealed that in volatile times, investors in Balanced Advantage Fund had smooth returns in comparison with pure equity counterparts.
People Also Ask
Q: Could Sundaram Balanced Advantage Fund be used as a monthly income?
A: yes, the fund has a Systematic Withdrawal Plan in 2025, which allows investors to receive a certain sum on a regular basis.
Which European Hybrid and Equity Hybrid funds by Sundaram are the best aggressive funds?
Aggressive Hybrid funds are good in case one has high risk appetite. Such funds invest more on equities and lesser percentage on debt to stabilise the portfolio. The Sundaram Equity Hybrid Fund leads the pack with 65-80 percent equity base, so as to realise the full growth potential with a level of protection.
Salient Characteristics of Sundaram Equity Hybrid Fund
- Excessive tendency towards bluechip stocks as a source of capital gain.
- Debt invested in quality paper to be safe.
- Appropriate in case the investor has an investment horizon of 5 years and above.
- Target industries that have led to the growth of the Indian economy, such as banking, IT, and FMCG.
Advantages and Disadvantages of Sundaram Equity Hybrid Fund
Pros:
- Potential to upscale better returns than balanced or conservative hybrids in the long-term.
- Stability-equity growth diversification.
- Properly studied stock picking mechanism.
Cons:
- Increased volatility particularly when correcting the stock market.
- Unsuitable when regular income is required or is intended to be used on a short-term basis.
Did you know?
Hybrid funds are aggressive like Sundaram Equity Hybrid, and they should not be less than 65 percent equity in order to be taxed as equity and hence, they are appealing to investors who are interested in other long-term capital gain tax-efficiently.
People Also Ask
Q: Sundaram Hybrid mutual funds lock-in period?
A: Sundaram hybrid funds, including the ones here, are open-ended and do not have lock-in without exception, except ELSS and Children funds.
Is the Sundaram Conservative Hybrid Fund the Best Fund to have in Portfolios of Risk-Averse Investors?
The Sundaram Conservative Hybrid Fund is an appropriate choice of ultra-conservative investors who are more interested in the security of their capital than the active growth strategy. This fund is dominated by fixed-income tool with minimum exposure to equities to provide regular income.
Performances of Sundaram Conservative Hybrid Fund
- Invests almost three-quarters to half of the funds in bonds, debentures, and other instruments of debt.
- Keeps a limited equity position of a kicker in favorable market times.
- Low volatility is attractive to retirees and capital preservation investors.
- Periodic retirement plans of systematic payments.
Advantages and disadvantages of Conservative Hybrid Fund
Pros:
- Stable returns are insensitive to huge swings.
- Reduces the risk in capital that is lower than that of equity-oriented funds.
- Can be used instead of a conventional savings or fixed deposit.
Cons:
- Reduced potential of long-term growth.
- Vulcanized to the risks of the debt market such as increase in interest rates.
Professionals opinion:
According to many financial experts, Conservative Hybrid funds are a reasonable investment to make in retirement portfolios in 2025, in case the interest rates are declining.
People Also Ask
Q: Does conservative hybrid funds pay out in the form of taxable returns?
A: Yes, conservative hybrid funds are taxed as debts. Gains which have a duration of more than three years are indexed.
What Is Sundaram Equity Savings Fund and How Should It Manage Volatility?
Sundaram Equity Savings Fund is a new hybrid fund that aims at providing the returns of an equity but with less volatility. This fund utilizes derivatives in hedging which means that equity risk is contained, but at the same time it makes arbitrage profits.
Key Features
- Three-party combination of equities, arbitrage and debt.
- Higher low risk equity positions through hedging.
- Stable long term performance and low drawdowns.
- Appropriate where the investor is risk averse and would like an average growth.
Pros and Cons
Pros:
- Less downside risk than equity or aggressive hybrid funds.
- Successful application of derivatives to stabilise the returns.
- Appropriate with short to medium term objectives.
Cons:
- Complex structure can be a source of confusion to new investors.
- Risks in derivative markets are there.
Did you know?
SEBI requires equity savings funds to have a minimum 65 percent gross equity exposure (with or without hedged equity) so that it could be taxed as equity. This enhances their tax efficiency as compared to conventional pure debt funds.
People Also Ask
Q: Is Sundaram Equity Savings Fund able to give consistent returns in unstable markets?
A: Yes, since it has hedged equity and arbitrage strategy, it tends to do better with sharp corrections compared to open equity funds.
What Sundaram Hybrid Fund is the best in 2025?
The appropriate hybrid fund will depend on your financial objectives, time frame and risk tolerance. The following is an overview of the comparison to make a decision:
| Investor Profile | Appropriate Fund | 2025 3Y CAGR | Risk Level | Monthly Income Option |
|---|---|---|---|---|
| Conservative | Conservative Hybrid Fund | 7.2% | Low | Yes |
| Moderate | Balanced Advantage / Equity Hybrid | 12.6-13.2% | Moderate | Yes |
| Aggressive | Equity Hybrid Fund | 13.2% | High | Limited |
| Volatility Conscious | Equity Savings Fund | 8.9% | Medium-Low | Yes |
The following are the key factors to be considered in the choice
- The risk that you can take and the expected returns.
- Investment goal timeline.
- Tax implications.
- Need for periodic income.
Quick Recap (TL;DR)
- Sundaram presents a good portfolio of hybrid funds to various investors within the year 2025.
- The tops of moderate and aggressive profiles are occupied by Balanced Advantage Fund and Equity Hybrid Fund.
- Equity Savings Funds and Conservative are the right funds to use in terms of securing the capital and consistent returns.
- There is no one size fits all fund, match fund choice with individual objectives and tolerance to risk.
Professionals Idea:
It is according to all market cycles that a combination of two or three types of Sundaram hybrid funds in your portfolio can yield the best results, says one of the leading certified financial planners in Mumbai.
People Also Ask (FAQs)
Q: What is the frequency with which I need to review my investments in Sundaram hybrid funds?
A: Once every year, or after any significant happenings in life or an economic change in the market.
Q: Are Sundaram hybrid funds safe in the hands of first-time investor?
A: Yes, particularly, Balanced Advantage and Conservative Hybrid funds on the basis of risk-managed strategies.
Q: Is it possible to invest in Sundaram hybrid mutual funds using NRIs?
A: Yes only NRIs (excepting some countries that have restricted schemes) will be able to invest in Sundaram hybrid schemes by 2025.
Q: Can hybrid funds be better taken along on a Systematic Investment Plan (SIP)?
A: SIP is very advisable because it is used to smooth the volatility of the market and to build wealth in a disciplined manner.
Sources
- Sundaram Mutual Fund Web site.
- SEBI - Hybrid Funds Regulations.
- Morningstar 2025 Fund Reports.
- Value Research Online - Mutual Fund Analysis.
