How Can I Invest My Money in Hybrid Funds?
Last Updated : Aug. 30, 2019, 10:51 a.m.
Hybrid mutual funds, like any other mutual fund scheme, aims to enhance your investment value by bringing together the inherent qualities of debt and equity instruments. This fund ensures that an investor gets both stable returns as well as capital appreciation by diversifying the investments. The investment scheme in different asset classes is known as the asset allocation process . These asset classes can be bonds, stocks, gold, or cash.
Various categories of hybrid mutual funds have a different proportion of asset allocation according to the investment objective of the scheme. These funds are considered to be a safe bet for those investors who want to have a diverse portfolio and maximum returns at moderate risk. Whether you’re a promising investor or a seasoned one, hybrid funds are perfectly equipped to make you achieve your financial goals in a better way. If you want to know the ways by which you can invest in these funds, you’re at the right place, just keep reading on!
What Are the Many Ways to Invest in Hybrid Mutual Funds?
Now you have adequate knowledge about hybrid mutual funds, you must want to know the methods by which you can make an investment in them. Well, there are mainly two prominent methods available about which we will tell you in detail below.
Systematic Investment Planning (SIP):
Through this method of investing, an individual can invest the amount in small-small parts at a definite interval. You can make the investment daily, weekly, fortnightly, monthly, quarterly, half-yearly, or yearly. The major benefit of SIP is that it helps you develop an investment habit that helps you in the longer run.
Lumpsum (One-time Investment):
This method of investment is suitable for those people who have a large sum of money to dispose of and can endure a higher percentage of risk. With this method, an individual invests the corpus (money for investing) in one shot for a definite period of time.
Which Hybrid Funds are Best to Invest In?
Before investing in any kind of mutual fund schemes, it is essential that you are absolutely clear about your financial goals. Risk mitigation, diverse portfolio, and suitability to all kinds of investors are some of the reasons that individuals should consider before investing in hybrid funds. One should also consider other factors like the possible risk, cost, return, past performance, etc. Based on these factors, you can have a look at some of the best performing hybrid funds to invest in India.
| Hybrid Mutual Funds | Rating | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
|---|---|---|---|---|---|
| Principal Hybrid Equity Fund | 5-star | -8.09% | 8.50% | 9.46% | 10.64% |
| ICICI Prudential Regular Savings Fund | 5-star | 6.32% | 7.98% | 9.65% | 9.56% |
| DSP Equity & Bond Fund | 4-star | -1.72% | 7.09% | 10.39% | 11.20% |
| HDFC Hybrid Equity Fund | 4-star | -1.83% | 7.67% | 9.64% | 14.51% |
| Franklin India Life Stage Fund of Funds 50s Plus - Floating Rate | 4-star | 3.85% | 6.55% | 7.57% | 8.19% |
| IDFC Asset Allocation Fund - Moderate Plan | 4-star | -0.94% | 5.54% | 7.46% | - |
How to Invest in Hybrid Mutual Funds Online?
In today’s digital age where everything can be done via the internet, you can invest in hybrid funds via various online methods. One of those methods is investing through Wishfin, an online financial marketplace where you can review the top-performing mutual funds and choose the right option in easy steps. The steps are mentioned below.
- Go to www.wishfin.com
- Click on ‘Mutual Funds’.
- Go to ‘Register’.
- Enter your Mobile Number
- Click on ‘Get started’.
- Mention your name, email id, and city you currently live in.
- Create a password taking a cue from the instructions shown on the page.
Your account will be created after entering a few more details.
After Login into the Account:
- Go to ‘Explore Mutual Funds’
- 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 hybrid mutual fund schemes you like to invest in.
N ote – The data is sourced from Value Research as on August 27, 2019.
D isclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.