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Everything You Need to Know About Hybrid Funds?

Everything You Need to Know About Hybrid Funds?

Last Updated : Aug. 28, 2019, 3:16 p.m.

In the age when people are equally inclined towards investing their hard-earned money as they are inclined towards savings, it is possible that you had passively participated in one of those conversations with your friends, family or colleagues about investment in the hybrid funds due to your lack of knowledge about it. Well, it’s time to get some!

Hybrid Funds, a type of mutual fund, that is an ideal mix of equity and debt instruments. Equity instruments include stocks of several companies. Whereas, debt instruments can be bonds, debentures and money-market securities issued by several companies. Hybrid Fund is a perfect amalgamation of debt and equity investments in a variable or fixed proportion to get good returns at moderate risk.

What are the best Hybrid Funds to invest in India?

While choosing the right hybrid funds to invest in, there are few things one should look for in the hybrid funds. These include risk factors, cost, return, tax on gains, your financial goals, and many others. Based on the overall performance of the funds over the years, they get a rating out of 1-5. Funds that have a rating of 3 and above is considered to be a good performing fund. You can have a look at some of the top-performing hybrid funds of India.

Hybrid Mutual Funds Rating 1-Year Return 3-Year Return 5-Year Return 10-Year Return
Principal Hybrid Equity Fund 5-star -9.28% 7.93% 9.03% 10.69%
HDFC Hybrid Equity Fund 4-star -3.38% 7.06% 9.27% 14.62%
DSP Equity & Bond Fund 4-star -3.67% 6.37% 9.85% 11.24%
ICICI Prudential Regular Savings Fund 5-star 5.98% 7.95% 9.60% 9.63%
Franklin India Life Stage Fund of Funds 50s Plus - Floating Rate 4-star 3.46% 6.36% 7.46% 8.20%
IDFC Asset Allocation Fund - Moderate Plan 4-star -1.81% 5.19% 7.24% -

Which type of investor will find it suitable to invest in Hybrid Funds?

Hybrid funds are made for that rare breed of investors who are ready to take calculated risks as this type of fund is a unique mixture of aggression and care. These funds gel perfectly well with those investors who are prepared to take debt plus returns rather than depending on the lower-but-regular fixed income. In order to have a good return on your investment, it is ideal to have at least a mid-term investment of 3 to 5 years in any hybrid fund.

Why should someone invest in a Hybrid Fund?

There are ample reasons for an investor to invest in hybrid funds. Some of the prominent ones are mentioned below.

  • Perfect for budding investors: Individuals who are willing to have an exposure in the equity market can start by investing in the hybrid funds as it is a perfect mixture of debt and equity. The debt component gives them a cushion against any up-and-down in the market. Unlike the equity funds, you will not have to face a total blackout in the time of return. Balance of both the funds will give you stable returns on your investments.
  • Diversification: Having an investment in the hybrid funds can give you the much-needed variety in your investment portfolio.
  • Dynamic Asset Allocation feature: This feature of Hybrid Funds is appropriate for that less conservative breed of investors who want to take the higher returns in the times of market fluctuations.

How to make an investment in top-notch Hybrid Mutual Funds?

There are mainly two ways available to make an investment that is via a Systematic Investment Plan (SIP) or via lumpsum. Lumpsum is basically a one-time investment whereas, through SIP, you can make the payments daily, weekly, monthly, quarterly, half-yearly, or yearly. There is also one online way available to make an investment in the Hybrid Mutual Funds with the help of Wishfin.

Wishfin is a financial marketplace where you can check the top-performing mutual funds and make an investment after choosing the right one for you in easy steps. The steps are mentioned below.

  • Go to
  • Click on Mutual Funds.
  • Go to ‘Register’.
  • Enter your Mobile Number
  • Click on ‘Get started’.
  • Mention your name, email id and other required details.
  • Create a password according to the required details.
  • Click on Sign Up.

After creating an account, follow these details.

  • Go to Explore Mutual Funds Options
  • Click on the ‘Hybrid’ option.
  • A list of hybrid funds with different ratings, denoted with stars, will come on the screen.
  • Click on the ‘Invest’ below any of the top-notch mutual fund schemes you like to invest in.

Note – The data is sourced from Value Research as on August 26, 2019.
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.

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