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What is the Risk Associated with Hybrid Funds?

What is the Risk Associated with Hybrid Funds?

Last Updated : Sept. 10, 2019, 3:06 p.m.

Hybrid Fund is a type of mutual fund that incorporates more than two asset classes to ensure maximum returns with minimal risk involved. These asset classes can be debt instruments, equity instruments, gold, and sometimes even in cash. Hybrid funds use various type of asset allocation processes to hedge the risk involved with equity instruments.

Hybrid funds strive to generate capital appreciation and stable returns through equity and debt portion of the fund, respectively. That’s why it is ill-considered to believe that there is no risk involved while investing in hybrid funds. There are mainly two types of risks involved in this type of funds that are fluctuations in interest rates and stock prices. The NAVs (Net Asset Value) may fall in case of stock prices’ fall according to the equity proportion and similarly, in the case of increased interest rates.

Though the degree of involved risks in hybrid funds can vary from aggressive to moderate to conservative, it largely depends on the allocation of various assets in the funds. Investors can choose the right kind of hybrid funds for them according to the risk level they can bear. Also, hybrid funds are considered to be a perfect match for both the budding and established investors.

What are the Best Hybrid Funds in India in which I can make an Investment?

The performance of any kind of mutual fund can be defined by a few important factors. And before choosing the right mutual fund, it’s important that you look at them. These factors include risk appetite, fund cost, expected return, time horizon, expense ratio, tax on gains, financial goals, and many others. Below you can have a look at some of the top-performing hybrid funds.

Hybrid Mutual Funds Rating 1-Year Return 3-Year Return 5-Year Return 10-Year Return
ICICI Prudential Regular Savings Fund 5-star 6.43% 7.61% 9.42% 9.58%
Principal Hybrid Equity Fund 5-star -8.45% 7.32% 8.76% 10.45%
Aditya Birla Sun Life Regular Savings Fund 4-star 0.52% 4.50% 8.67% 9.37%
DSP Equity & Bond Fund 4-star -2.06% 5.69% 9.43% 10.88%
Essel Regular Savings Fund 4-star 3.99% 4.76% 6.41% -
HDFC Hybrid Equity Fund 4-star -2.01% 6.76% 9.04% 14.32%
IDFC Asset Allocation Fund - Moderate Plan - Regular Plan 4-star -1.21% 5.00% 7.04% -

How can I Make an Investment in Top-performing Hybrid Mutual Funds Online?

The two ways that are available to make an investment in hybrid funds are via lumpsum or SIP (Systematic Investment Planning). Lumpsum is basically a one-time investment whereas, through SIP, you can make the payments daily, weekly, fortnightly, 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 an online financial marketplace where you can compare various superior mutual funds and make the right decision in choosing the most suitable mutual fund for you. The steps are mentioned below.

Registration Process:

  • Visit
  • Click on Mutual Funds.
  • Go to ‘Register’

Fill up the details:

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

Your account is ready to use. 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 will come on the screen. You can identify their rating by the stars mentioned against them.
  • Click on the ‘Invest’ below any of the top mutual fund schemes you like to invest in.

Note – The data is sourced from Value Research as of September 04, 2019. Also, it denotes the regular plan of the scheme mentioned above.
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.

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