Hybrid Funds

Hybrid funds are a combination of equity and debt mutual funds and are a great way to diversify your investment portfolio. When you invest in Hybrid Funds, part of your money is invested in equity and part in debt based on the prevailing market conditions. Investing in a hybrid mutual fund is an excellent option to gain wealth as well as expand your portfolio, as you would gain exposure to both equity and debt mutual funds.

Benefits of Hybrid Mutual Funds

  • Hybrid Funds generally give you higher returns as it combines different assets.
  • Hybrid Mutual Funds allows you to expand your portfolio and has the potential for good returns.
  • By investing in a mutual fund, you benefit from the fund manager who has expertise in asset management.
  • You can switch from one combination of assets to others if the opportunities for more significant returns seem high.

Things to Know before investing in an Equity Fund


Financial Goals

It is essential to take into account your financial goals before investing in any fund. You can track if the performance of the fund is in line with your goals.


Risk Appetite

If you are willing to take a moderate risk, then Hybrid Funds may well be the right choice for you. As the fund house diversifies your assets into debts and equities, chances for a decent return are high.


Time Frame

Hybrid funds are known to perform over the medium to long term. The history of funds suggests that it is known to fetch returns over an investment period of over four years. You can also benefit from the power of compounding if you hold the fund for its entire tenure.

Types of Hybrid Mutual Funds

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.
If the investment is made equally in debt and equity, it is classified as a Balanced 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 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.

Why Choose us?

  • Minimal Paperwork
  • Easy to browse as the funds are categorized under various options
  • Investors have the opportunity to compare the pros and cons of funds from all leading AMCs

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
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