Invest in Best Hybrid Funds in India 2024
Explore the top-performing hybrid funds in India for 2024. Learn how these funds can help you achieve balanced growth by combining equity and debt investments.
What are Hybrid Mutual Funds?
Hybrid funds are investment funds that allocate assets across both equities (stocks) and fixed-income securities (bonds), providing a balanced approach to investing. They aim to offer the growth potential of equities while reducing risk with the stability of bonds, making them suitable for moderate-risk investors.
Best Hybrid Mutual Funds 2024
| Fund Name | Category | 1-Year Returns | 3-Year Returns | 5-Year Returns |
|---|---|---|---|---|
| HDFC Hybrid Equity Fund | Aggressive Hybrid | 15.40% | 12.30% | 11.25% |
| ICICI Prudential Equity & Debt Fund | Aggressive Hybrid | 14.75% | 13.10% | 12.00% |
| SBI Equity Hybrid Fund | Aggressive Hybrid | 13.85% | 11.65% | 10.70% |
| Axis Triple Advantage Fund | Multi-Asset Allocation | 12.50% | 10.90% | 9.85% |
| Aditya Birla Sun Life Equity Hybrid ‘95 Fund | Aggressive Hybrid | 14.20% | 12.00% | 11.10% |
| Kotak Equity Hybrid Fund | Aggressive Hybrid | 13.60% | 11.80% | 10.50% |
| Tata Hybrid Equity Fund | Aggressive Hybrid | 13.25% | 11.35% | 10.20% |
| DSP Dynamic Asset Allocation Fund | Dynamic Asset Allocation | 12.00% | 10.75% | 9.65% |
| Franklin India Equity Hybrid Fund | Aggressive Hybrid | 13.10% | 11.50% | 10.45% |
| Nippon India Hybrid Bond Fund | Conservative Hybrid | 10.80% | 9.15% | 8.50% |
Returns are approximate and represent past performance. Actual future performance may vary.
Advantages of Investing in Debt Mutual Funds
- Balanced Risk and Return: Hybrid funds aim to balance the risk and return by investing in both equity (stocks) and debt (bonds). This blend helps to potentially provide higher returns than purely debt funds while reducing the overall risk compared to equity-only investments.
- Diversification: By investing in both equities and fixed-income securities, hybrid funds offer diversification within a single fund. This diversification helps spread risk across different asset classes and sectors, potentially reducing the impact of poor performance in any one area.
- Professional Management: Hybrid mutual funds are managed by experienced fund managers who actively allocate assets between equity and debt based on market conditions. This professional management helps optimize returns while managing risk according to the fund’s investment strategy.
- Income and Growth Potential: Hybrid funds typically offer a mix of regular income from debt investments and growth potential from equities. This combination can be appealing to investors looking for both stability and capital appreciation.
- Flexibility: Hybrid funds come in various types, such as aggressive, balanced, or conservative hybrid funds, allowing investors to choose a fund that aligns with their risk tolerance and investment goals.
- Reduced Volatility: The presence of debt instruments in hybrid funds can cushion the impact of market fluctuations on the overall portfolio, reducing the fund’s volatility compared to equity-only funds.
- Suitable for Various Goals: Hybrid funds can be suitable for different investment goals, such as retirement planning, wealth accumulation, or regular income, making them versatile investment options.
- Ease of Investment: Investing in hybrid mutual funds offers a one-stop solution for those seeking exposure to both equities and debt without needing to manage separate investments in these asset classes.
- Tax Benefits: Depending on the type of hybrid fund and the investor’s tax bracket, some hybrid funds may offer tax advantages. For example, certain hybrid funds may be eligible for tax benefits under specific tax-saving schemes.
- Systematic Investment Plans (SIPs): Hybrid mutual funds often offer SIP options, allowing investors to invest a fixed amount regularly. This can help in rupee-cost averaging and disciplined investing.
Who should invest in Hybrid Mutual Funds?
- Moderate Risk Takers: Ideal for investors seeking a balance between risk and return, blending equities for growth and fixed income for stability.
- Long-Term Investors: Suitable for those with a medium to long-term investment horizon who can withstand market fluctuations.
- Income Seekers: Good for individuals looking for regular income through interest payments while also benefiting from potential capital appreciation.
- Diversification Seekers: Perfect for investors wanting a diversified portfolio in one fund, combining different asset classes.
- Conservative Investors: Suitable for those who prefer lower volatility compared to pure equity funds but still want exposure to market growth.
Types of Hybrid Mutual Funds
Conservative Hybrid Fund It is mainly for investors who are averse to risk. The bulk of the investment (75 per cent) is made in debt and the balance in equity.
Balanced Hybrid Fund If the investment is made equally in debt and equity, it is classified as a Balanced Hybrid Fund.
Aggressive Hybrid Fund If you have a high-risk appetite you can choose this fund as 65% of the investment is in equities and the rest in debt. Remember, return on equities is subject to market performance.
Arbitrage Funds Arbitrage Funds take advantage of the arbitrage opportunities in the market, that is, the price difference between various markets. As a substantial part of the investment is in debt, the risk is lower. Another advantage of this type of funds is lower taxation on equity and lower volatility.
How to Invest in Hybrid Funds at Fincover?
- Log in to Fincover
- Select “Investments” -> “Mutual Funds” and click on “Hybrid Mutual Fund”
- Enter the details and compare Hybrid Mutual Funds from different AMCs
- You can select the fund that suits your financial goals and proceed to make the purchase