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Best Hybrid Mutual Funds

Hybrid funds invest in more than one asset category, which primarily includes equity and debt. Their main objective is to achieve diversification while minimising the concentration risk. To invest in the best hybrid mutual funds do go through all the features of hybrid funds, different sub-categories, risks associated with it.

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Top 10 Hybrid Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Quant Absolute FundHybridVery High67.4%5star96
Quant Multi Asset FundHybridVery High62.1%5star117
BNP Paribas Substantial Equity Hybrid FundHybridVery High44.6%5star715
Axis Triple Advantage FundHybridVery High42.2%5star1,435
Canara Robeco Equity Debt Allocation FundHybridVery High39.8%5star6,746
Axis Equity Hybrid FundHybridVery High43.5%5star1,868
Mirae Asset Hybrid - Equity FundHybridVery High42.8%5star6,109
Edelweiss Balanced Advantage FundHybridVery High35.0%5star5,845
Mahindra Dhan Sanchay YojanaHybridModerately High31.0%5star301
Kotak Balanced Advantage FundHybridModerately High23.1%5star11,286
Union Balanced Advantage FundHybridModerate21.4%5star1,448
Kotak Debt HybridHybridModerately High22.1%5star1,050
Principal Equity Savings FundHybridHigh29.9%5star101
SBI Multi Asset Allocation FundHybridHigh22.4%5star460
Canara Robeco Conservative Hybrid FundHybridModerately High15.9%5star896
View All Top 10 Hybrid Mutual Funds

Features of Hybrid Mutual Funds

Here are some features of the best hybrid mutual funds

Types: Hybrid funds are primarily of two types: Equity-oriented and debt-oriented. These are further categorised into six kinds: aggressive hybrid funds, dynamic asset allocation or balanced advantage funds, conservative hybrid funds, arbitrage or equity savings, and multi-asset allocation funds. 

Asset allocation: The asset allocation of hybrid funds depends on the scheme type, with a 40% - 60% investment in equity and debt instruments. Equity-oriented hybrid funds may invest a minimum of 60% of the assets in stocks of different companies. Conversely, debt-oriented scheme portfolios may comprise at least 60% fixed-income instruments. 

Risk-reward ratio: The portfolio risk of top hybrid mutual funds is minimised by investing in a combination of assets that have a low correlation. The fund managers of these schemes invest the fund corpus across different asset classes to maximise the returns and reduce the associated risk. Nonetheless, an aggressive scheme will feature a more significant risk-reward ratio than a conservative plan.

Taxability

Long-term capital gains tax: For equity-oriented debt schemes, the long-term capital gains exceeding Rs.1 lakh are taxed at 10%. On the other hand, LTCG on debt-oriented plans attracts 20% tax alongside indexation benefits. 

Short-term capital gains tax: Short-term capital gains from a debt-based hybrid mutual fund are added to an investors’ income for the financial year and taxed as per their slab rate. STCG from equity-oriented funds are taxed at 15% + 4% cess. 

TDS: Dividend payouts from equity-based schemes exceeding Rs.5000 attract a 10% TDS. It does not apply to debt-oriented hybrid funds, however. 

Who Are These Funds Suited For?

Hybrid funds are appropriate for investors looking for higher returns than debt funds but with less exposure to volatile market conditions associated with equity funds. Debt-oriented hybrid fund schemes are suitable for a conservative investment approach. Conversely, equity-oriented hybrid funds meet relatively aggressive capital appreciation requirements. That said, investors must consider certain key aspects before figuring out which is the best hybrid mutual fund for them.

Here are certain aspects that one should consider before investing in hybrid mutual funds:

Investment goal: The investment objective varies from one individual to another. One must make sure to identify their financial purpose and choose a fund accordingly.

Risk profile: All investors do not have the same risk appetite. While one investor may have an aggressive approach, another might want to invest in a fund associated with low risk. Investors must assess their risk profile before parting with their savings. 

Past performance of the fund: It’s vital to check the historical returns of a fund and compare the same with other options before deciding.  

Expense ratio: It refers to the maintenance charge levied by an asset management company (AMC). This fee varies from one scheme to another. Hence, one must know the expense ratio of a hybrid fund before allocating his/her savings to it. 

Direct and regular plan: Direct plans are offered by the fund houses directly; no intermediaries are involved. However, individuals have to invest in regular plans via third party agents, for example, brokers or distributors. In the former, the expense ratio is lower than that of regular mutual fund plans. Thus, they report a higher NAV when compared with regular plans.

Major Advantages

Here some benefits of investing in the best hybrid mutual funds 2021

Active risk management: Hybrid mutual funds enable fund managers to actively optimise the portfolio risk and return by investing in a prudent mix of non-correlated asset categories.  

Suitable for various risk profiles: The risk factor associated with the best hybrid mutual funds ranges from low to high. It depends upon the type of fund and its asset allocation. Hence, investors can choose a scheme that is best suited for their risk profile and investment goal. 

Exposure to multiple asset classes: Hybrid mutual funds invest in different asset categories and diversify the investment. Hence, investors gain exposure to more than one class of assets by investing in a single product. 

Investment in asset sub-classes:  Besides investing in multiple asset categories, hybrid funds invest across different sub-classes within an asset category. For example, the equity component of these funds may include investments in large-cap, small-cap and mid-cap stocks. 

Investment modes: There are two ways to invest in hybrid MF schemes – lumpsum and SIP. The former allows investors to invest once in a mutual fund scheme. That said, please note that one may have to invest at least Rs.1,000 for this route. A systematic investment plan (SIP) enables investors to allocate their funds to a hybrid scheme by paying a fixed sum at regular intervals, for example, monthly or quarterly. The SIP amount can be as low as Rs.500, which varies for individual schemes.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Quant Absolute Fund Direct Growth

Fund Performance: This fund has given 31.68% annualized returns in the last three years. In the last year, its returns were 67.44%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 67.44% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM96Cr
1Y Returns67.4%

Quant Multi Asset Fund Direct Growth

Fund Performance: This fund has given 29.32% annualized returns in the last three years. In the last year, its returns were 62.1%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 62.1% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM117Cr
1Y Returns62.1%

BNP Paribas Substantial Equity Hybrid Fund Direct Growth

Fund Performance: This fund has given 23.9% annualized returns in the last three years. In the last year, its returns were 44.62%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 44.62% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹300.

Min Investment Amt₹5,000
AUM715Cr
1Y Returns44.6%

Axis Triple Advantage Direct Plan Growth

Fund Performance: This fund has given 23.61% annualized returns in the last three years. In the last year, its returns were 42.22%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 42.22% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,435Cr
1Y Returns42.2%

Canara Robeco Equity Hybrid Fund Direct Growth

Fund Performance: This fund has given 22.15% annualized returns in the last three years. In the last year, its returns were 39.78%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 39.78% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM6,746Cr
1Y Returns39.8%

Axis Equity Hybrid Fund Direct Growth

Fund Performance: This fund has given 21.79% annualized returns in the last three years. In the last year, its returns were 43.48%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 43.48% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,868Cr
1Y Returns43.5%

Mirae Asset Hybrid Equity Fund Direct Growth

Fund Performance: This fund has given 21.31% annualized returns in the last three years. In the last year, its returns were 42.83%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 42.83% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM6,109Cr
1Y Returns42.8%

Edelweiss Balanced Advantage Fund Direct Growth

Fund Performance: This fund has given 20% annualized returns in the last three years. In the last year, its returns were 35.03%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 35.03% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM5,845Cr
1Y Returns35.0%

Mahindra Manulife Equity Savings Dhan Sanchay Yojana Direct Growth

Fund Performance: This fund has given 17.13% annualized returns in the last three years. In the last year, its returns were 31.01%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 31.01% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹1,000
AUM301Cr
1Y Returns31.0%

Kotak Balanced Advantage Fund Direct Growth

Fund Performance: This fund has given 16.19% annualized returns in the last three years. In the last year, its returns were 23.06%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 23.06% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹1,000
AUM11,286Cr
1Y Returns23.1%

Union Balanced Advantage Fund Direct Growth

Fund Performance: This fund has given 15.94% annualized returns in the last three years. In the last year, its returns were 21.43%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 21.43% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹2,000.

Min Investment Amt₹1,000
AUM1,448Cr
1Y Returns21.4%

Kotak Debt Hybrid Fund Direct Growth

Fund Performance: This fund has given 15.66% annualized returns in the last three years. In the last year, its returns were 22.11%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 22.11% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,050Cr
1Y Returns22.1%

Principal Equity Savings Fund Direct Growth

Fund Performance: This fund has given 14.88% annualized returns in the last three years. In the last year, its returns were 29.86%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 29.86% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM101Cr
1Y Returns29.9%

SBI Multi Asset Allocation Fund Direct Growth

Fund Performance: This fund has given 14.47% annualized returns in the last three years. In the last year, its returns were 22.41%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 22.41% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM460Cr
1Y Returns22.4%

Canara Robeco Conservative Hybrid Fund Direct Growth

Fund Performance: This fund has given 13.98% annualized returns in the last three years. In the last year, its returns were 15.89%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 15.89% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM896Cr
1Y Returns15.9%

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