Hybrid mutual funds are those in which both equity and debt components coexist within a single portfolio. Their objective is to strike a balance, so that one can have an upside from equities but at the same time curb risk with exposure to debt securities. This makes them the appropriate choice for investors with moderate levels of risk and an expectation of stable returns. There are multiple types of hybrid funds, which include the level of risk or financial goal that it caters to
1. SBI Magnum Children's Benefit
Category : Hybrid Aggressive
Aggressive Hybrid Funds invest in a mix of equity and debt, with a higher allocation towards equities, typically around 65-80%. This blend aims to provide substantial capital appreciation through equities while balancing risk with the stability of debt investments. Suitable for investors with a moderate to high-risk appetite, these funds seek long-term growth with some level of income generation. The diversified portfolio helps in mitigating risks while capturing the growth potential of equities.
| Net Assets [ Cr ] | 3 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 2572 | 28.71 | Very High | 12.03 | 5000 |
2. UTI Retirement
Category : Hybrid Balanced
Balanced Hybrid Funds invest in a mix of equity and debt, maintaining a balanced allocation typically around 40-60% in each asset class. This strategy aims to provide both capital appreciation and income generation, balancing growth potential with stability. Suitable for investors with a moderate risk appetite, these funds seek to offer steady returns with lower volatility compared to pure equity funds. The diversified portfolio helps in mitigating risks while benefiting from both market segments.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 4649 | 14.25 | High | 2.61 | 500 |
3. Kotak Debt Hybrid
Category : Conservative Hybrid
Debt Hybrid Funds primarily invest in debt instruments, with a smaller allocation to equities, usually around 20-25%. This strategy aims to provide stable income through debt securities while offering some growth potential from equities. Suitable for conservative investors, these funds seek to balance income generation with modest capital appreciation. The mix of debt and equity helps in reducing risk while providing better returns than pure debt funds.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 2677 | 13.87 | Moderately High | 2.93 | 100 |
4. HSBC Equity Savings
Category : Hybrid Equity Savings
Equity Hybrid Funds invest predominantly in equities, typically around 65-80%, with the remainder in debt instruments. This approach aims to provide significant capital appreciation through equities while mitigating risk with the stability of debt. Suitable for investors with a moderate to high-risk appetite, these funds seek to balance growth and income. The diversified allocation helps capture equity market opportunities while cushioning against market volatility.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 407 | 15.02 | Moderately High | 4.87 | 5000 |
5. Kotak Arbitrage Regular
Category: Hybrid Arbitrage
Arbitrage Hybrid Funds exploit price differences between cash and derivatives markets to generate returns, primarily through arbitrage opportunities. They maintain a balanced allocation between equities and debt to enhance stability and income. Suitable for investors with a low to moderate risk appetite, these funds aim to provide consistent, low-risk returns. The strategy leverages market inefficiencies, offering potential gains with minimal exposure to market volatility.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 51570 | 6.06% | Low | 2.75 | 100 |
6. HDFC Balanced Arbitrage
Category : Hybrid Dynamic Asset
Dynamic Hybrid Funds actively adjust their allocation between equity and debt based on market conditions and opportunities. This flexible strategy aims to optimize returns by shifting the balance to equities in bullish markets and to debt in bearish markets. Suitable for investors with a moderate to high-risk appetite, these funds seek to maximize growth while managing risk dynamically. The adaptive approach helps in capturing market opportunities and mitigating risks effectively.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 94048 | 23.13 | Very High | 11.11 | 100 |
7. Quant Multi Asset
Category : Hybrid Multi Asset Allocation
Multi Asset Allocation Hybrid Funds invest across multiple asset classes, such as equities, debt, and commodities, to diversify risk and enhance returns. This strategy aims to balance growth, income, and stability by leveraging the performance of various asset types. Suitable for investors with a moderate risk appetite, these funds seek to provide a well-rounded investment portfolio. The diversified approach helps in mitigating risks associated with any single asset class while capturing broader market opportunities.
| Net Assets [ Cr ] | 5 Years Returns [ % ] | Risk Type | Alpha [ % ] | Min Investment |
| 2605 | 30.26 | High | 10.82 | 5000 |