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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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
| Quant Multi Asset Fund | Hybrid | Very High | 18.5% | 5 | ₹362 |
| Quant Absolute Fund | Hybrid | Very High | 15.0% | 5 | ₹583 |
| ICICI Prudential Equity & Debt Fund | Hybrid | Very High | 9.9% | 5 | ₹20,360 |
| Mahindra Manulife Hybrid Equity Nivesh Yojana Fund | Hybrid | Moderately High | 3.0% | 5 | ₹544 |
| Baroda BNP Paribas Aggressive Hybrid Fund | Hybrid | Very High | 0.7% | 5 | ₹787 |
| Edelweiss Balanced Advantage Fund | Hybrid | Very High | 0.9% | 5 | ₹8,733 |
| Mirae Asset Equity Savings Fund | Hybrid | Moderately High | 2.8% | 5 | ₹583 |
| Kotak Debt Hybrid Fund | Hybrid | Moderately High | 4.2% | 5 | ₹1,582 |
| Edelweiss Equity Savings Fund | Hybrid | Moderately High | 2.4% | 5 | ₹319 |
| Canara Robeco Conservative Hybrid Fund | Hybrid | Moderately High | 2.3% | 5 | ₹1,162 |
| ICICI Prudential Regular Savings Fund | Hybrid | Moderately High | 5.1% | 5 | ₹3,310 |
| Tata Arbitrage Fund | Hybrid | Low | 4.2% | 5 | ₹7,385 |
| Edelweiss Arbitrage Fund | Hybrid | Low | 4.7% | 5 | ₹5,841 |
| Axis Arbitrage Fund | Hybrid | Low | 4.8% | 5 | ₹4,395 |
| Mahindra Manulife Arbitrage Yojana Fund | Hybrid | Low | 3.6% | 5 | ₹28 |
| View All |
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.
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.
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.
Here some benefits of investing in the best hybrid mutual funds 2022:
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.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Quant Multi Asset Fund has given 32.24% annualized returns in the past three years and 20.35% in the last 5 years. The Quant Multi Asset Fund belongs to the Hybrid category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Multi Asset Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹362Cr |
| 1Y Returns | 18.5% |
Fund Performance: The Quant Absolute Fund has given 32.14% annualized returns in the past three years and 20.48% in the last 5 years. The Quant Absolute Fund belongs to the Hybrid category of Quant Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Quant Absolute Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹583Cr |
| 1Y Returns | 15.0% |
Fund Performance: The ICICI Prudential Equity & Debt Fund has given 20.7% annualized returns in the past three years and 14.6% in the last 5 years. The ICICI Prudential Equity & Debt Fund belongs to the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Equity & Debt Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹20,360Cr |
| 1Y Returns | 9.9% |
Fund Performance: The Mahindra Manulife Hybrid Equity Nivesh Yojana Fund belongs to the Hybrid category of Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Hybrid Equity Nivesh Yojana Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹544Cr |
| 1Y Returns | 3.0% |
Fund Performance: The Baroda BNP Paribas Aggressive Hybrid Fund has given 16.31% annualized returns in the past three years and 13.62% in the last 5 years. The Baroda BNP Paribas Aggressive Hybrid Fund belongs to the Hybrid category of BNP Paribas Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas Aggressive Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹787Cr |
| 1Y Returns | 0.7% |
Fund Performance: The Edelweiss Balanced Advantage Fund has given 15.95% annualized returns in the past three years and 12.27% in the last 5 years. The Edelweiss Balanced Advantage Fund belongs to the Hybrid category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Balanced Advantage Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,733Cr |
| 1Y Returns | 0.9% |
Fund Performance: The Mirae Asset Equity Savings Fund belongs to the Hybrid category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Equity Savings Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹583Cr |
| 1Y Returns | 2.8% |
Fund Performance: The Kotak Debt Hybrid Fund has given 12.18% annualized returns in the past three years and 9.72% in the last 5 years. The Kotak Debt Hybrid Fund belongs to the Hybrid category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Debt Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,582Cr |
| 1Y Returns | 4.2% |
Fund Performance: The Edelweiss Equity Savings Fund has given 10.45% annualized returns in the past three years and 9.34% in the last 5 years. The Edelweiss Equity Savings Fund belongs to the Hybrid category of Edelweiss Mutual Funds.
Minimum Investment Amount:
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹319Cr |
| 1Y Returns | 2.4% |
Fund Performance: The Canara Robeco Conservative Hybrid Fund has given 10.41% annualized returns in the past three years and 8.92% in the last 5 years. The Canara Robeco Conservative Hybrid Fund belongs to the Hybrid category of Canara Robeco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,162Cr |
| 1Y Returns | 2.3% |
Fund Performance: The ICICI Prudential Regular Savings Fund has given 9.97% annualized returns in the past three years and 8.97% in the last 5 years. The ICICI Prudential Regular Savings Fund belongs to the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Regular Savings Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,310Cr |
| 1Y Returns | 5.1% |
Fund Performance: The Tata Arbitrage Fund belongs to the Hybrid category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata Arbitrage Fund via lump sum is ₹5,000 and via SIP is ₹150.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,385Cr |
| 1Y Returns | 4.2% |
Fund Performance: The Edelweiss Arbitrage Fund has given 4.94% annualized returns in the past three years and 5.74% in the last 5 years. The Edelweiss Arbitrage Fund belongs to the Hybrid category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Arbitrage Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹5,841Cr |
| 1Y Returns | 4.7% |
Fund Performance: The Axis Arbitrage Fund has given 4.75% annualized returns in the past three years and 5.62% in the last 5 years. The Axis Arbitrage Fund belongs to the Hybrid category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Arbitrage Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,395Cr |
| 1Y Returns | 4.8% |
Fund Performance: The Mahindra Manulife Arbitrage Yojana Fund belongs to the Hybrid category of Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mahindra Manulife Arbitrage Yojana Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹28Cr |
| 1Y Returns | 3.6% |
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