Who Should Invest in Hybrid Funds?
Last Updated : Sept. 4, 2019, 10:41 a.m.
Hybrid funds, also known as balanced funds, are a type of mutual fund that invests in more than two asset classes. These asset classes can be equity instruments, debt instruments, gold, and sometimes in cash. The proportion of asset allocation of these instruments can be different in various categories of hybrid funds .
Like any mutual funds, there is risk involved in hybrid funds also but the risk quotient is minimal in these type of funds as it has more than two categories of asset classes. This diversification of asset classes minimizes the risk. In hybrid funds, the equity share is receptive to the market up-and-down, while the debt portion has risks associated with it like the fluctuating interest rates but if you have the right proportion of asset classes, then you can nullify the risk as much as possible.
There are various reasons like a diversified investment portfolio and dynamic asset allocation that make hybrid funds an equal investment opportunity for both the budding investors and a seasoned one. The perfect balance of both the funds gives the assurance of stable returns with the least risk involved. Also, hybrid funds are perfect for conservative investors who want to make a safe investment in debt instruments, but a calculated extra return from the equity won’t hurt their pocket as well. It is believed that the ideal period to get the desired returns from the hybrid funds is 5 years or more .
Want to Know What are the Best Hybrid Funds to invest in India?
There are a few important factors that define the performance of any kind of mutual fund. And before choosing any mutual fund, it’s important that you look at them. These factors include risk factors, cost, return, tax on gains, your 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 |
|---|---|---|---|---|---|
| Principal Hybrid Equity Fund | 5-star | -8.75% | 7.84% | 9.40% | 10.64% |
| HDFC Hybrid Equity Fund | 4-star | -2.74% | 6.93% | 9.60% | 14.50% |
| DSP Equity & Bond Fund | 4-star | -2.43% | 6.33% | 10.25% | 11.12% |
| ICICI Prudential Regular Savings Fund | 5-star | 6.14% | 7.72% | 9.60% | 9.60% |
| Essel Regular Savings Fund | 4-star | 5.20% | 6.55% | 8.35% | - |
| IDFC Asset Allocation Fund - Moderate Plan | 4-star | -1.51% | 5.22% | 7.35% | - |
Can you Make an Investment in Top performing Hybrid Mutual Funds Online?
There are mainly two ways available to make an investment that is 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 top-performing mutual funds and make the right decision in choosing the most suitable mutual fund for you. The steps are mentioned below.
Registration Process:
- Go to wishfin.com
- 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 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 will come on the screen. You can identify the 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 on August 30, 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”.