Equirus Wealth
18 Apr 2024 • 5 min read
Investing can be daunting especially when you don’t have time for research. You want to see your money grow, but the thought of high-risk ventures can be unsettling. Hybrid mutual funds offer a solution. They combine the growth potential of equity (stocks) with the stability of debt (bonds) to create a balanced investment approach. This article explores everything you need to know about hybrid mutual funds, including their benefits, different types, taxation implications, and even some top performers in the market.
Hybrid mutual funds, also known as balanced funds, are a type of mutual fund that invests in a mix of equity and debt instruments. The specific allocation between these asset classes varies depending on the fund's objective. Some hybrid funds may lean more towards equity, targeting capital appreciation, while others may be debt-heavy, prioritizing regular income and stability. This flexibility allows investors to choose a fund that aligns with their risk tolerance and financial goals.
There are several advantages to investing in hybrid mutual funds:
While past performance is not indicative of future results, some hybrid mutual funds have consistently delivered strong returns. It's important to note that this is not an exhaustive list and is for informational purposes only. Investors should conduct their research and consult a financial advisor before making any investment decisions:
Name | 1Y% | 3Y% | 5Y% | AUM (cr) | Expense Ratio% | Age |
---|---|---|---|---|---|---|
Quant Multi Asset Fund | 47.40 | 29.68 | 28.18 | 1,829 | 2.01 | 23 years |
ICICI Prudential Equity & Debt Fund | 39.14 | 25.90 | 20.16 | 32,429 | 1.62 | 24 years |
HDFC Balanced Advantage Fund - Regular Plan | 38.59 | 25.19 | 17.92 | 79,875 | 1.37 | 24 years |
Bank of India Mid & Small Cap Equity & Debt Fund | 47.14 | 24.96 | 20.92 | 665 | 2.42 | 8 years |
ICICI Prudential Multi Asset Fund | 32.70 | 24.91 | 19.24 | 34,704 | 1.51 | 21 years |
Quant Absolute Fund | 37.57 | 23.33 | 23.89 | 1,869 | 2.05 | 23 years |
JM Aggressive Hybrid Fund | 49.41 | 23.00 | 18.14 | 223 | 2.31 | 29 years |
Edelweiss Aggressive Hybrid Fund - Plan B | 32.57 | 19.56 | 16.45 | 1,440 | 2.36 | 15 years |
Edelweiss Aggressive Hybrid Fund | 32.47 | 19.47 | 16.39 | 1,440 | 2.04 | 15 years |
UTI Aggressive Hybrid Fund | 31.56 | 19.08 | 15.20 | 5,243 | 1.95 | 29 years |
Taxes are an essential aspect of any investment. Dividends received from hybrid mutual funds are classified into two categories:
When selecting a hybrid mutual fund, consider the following factors:
The Final Word
Hybrid mutual funds offer a compelling option for investors seeking a balanced approach. By combining the growth potential of equity with the stability of debt, they provide diversification and the potential for steady returns. Remember, thorough research and consulting a financial advisor are crucial before investing in any mutual fund. With careful planning, hybrid mutual funds can be a valuable tool in achieving your financial goals.
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