Hybrid mutual funds invest in a mixture of underlying assets such as equity, debt, and gold instruments. The combination of the investment depends on the investment objective of the particular fund. Also, the returns and risk schemes will be based on the type of allocation for each asset class.
It can be a fund suitable to all kinds of investors, providing a wide range of combinations and different forms of advantages and risks associated with it. Look at the top hybrid mutual fund list here to understand more.
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| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
|---|---|---|---|---|---|
Quant Multi Asset Fund | Hybrid | Very High | 16.0% | 5 | ₹1,051 |
ICICI Prudential Equity & Debt Fund | Hybrid | Very High | 19.9% | 5 | ₹26,183 |
ICICI Prudential Multi Asset Fund | Hybrid | Very High | 19.7% | 5 | ₹24,931 |
HDFC Balanced Advantage Fund | Hybrid | Very High | 22.7% | 5 | ₹63,981 |
Quant Absolute Fund | Hybrid | Very High | 6.7% | 5 | ₹1,354 |
ICICI Prudential Balanced Advantage Fund | Hybrid | High | 12.8% | 5 | ₹49,871 |
Kotak Equity Savings Fund | Hybrid | Moderate | 12.8% | 5 | ₹3,292 |
Kotak Debt Hybrid Fund | Hybrid | Moderately High | 11.4% | 5 | ₹1,999 |
SBI Conservative Hybrid Fund | Hybrid | High | 10.3% | 5 | ₹8,916 |
ICICI Prudential Equity Savings Fund | Hybrid | Low to Moderate | 9.3% | 5 | ₹7,325 |
Invesco India Arbitrage Fund | Hybrid | Low | 8.1% | 5 | ₹8,678 |
Edelweiss Arbitrage Fund | Hybrid | Low | 8.0% | 5 | ₹7,036 |
Bank of India Mid & Small Cap Equity & Debt Fund | Hybrid | Very High | 31.1% | 4 | ₹493 |
JM Equity Hybrid Fund | Hybrid | Very High | 28.0% | 4 | ₹93 |
JM Aggressive Hybrid Fund | Hybrid | Very High | 27.6% | 4 | ₹93 |
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Hybrid mutual funds are suitable for:
They can suit all these categories, given that they come in various combinations. These funds vary in levels of risks, asset allocations, capital appreciation, and diversification. This makes them a fund suitable for all kinds of investment styles and objectives.
The major factors to be considered while finding the best hybrid funds and making investments are:
These funds do not come with guaranteed returns, and their return can be affected by the performance of the underlying assets. This equity market performance can affect the returns to the tune of equity exposure of the fund.
These funds are known to be suitable for investors with a medium-term horizon (3 to 5 years.) Moreover, the longer the time period, the better the chances of getting a stable and higher return from the fund.
Investments in hybrid funds do not come without risks. The risk of a hybrid fund primarily depends on the percent of allocation on equity holdings. The higher the equity holdings in the portfolio, the greater the risk associated with the fund and vice-versa.
While finding the best performing hybrid mutual funds, it is crucial to note the combination of the assets chosen, the proportion in every asset, and the strategy of investment that is determined by the fund manager. This is because an investor can't influence these components.
Hybrid funds will also come with a fee known as expense ratio, and the lower the expense ratio, the less it will bite off your investment.
The major risks to consider while finding the best hybrid mutual funds to invest in 2023 are-
A hybrid mutual fund is when the fund is invested in various assets such as equities, securities, gold instruments, and more. Simply put, an individual investing in a hybrid fund is investing in the combination of its underlying assets.
Hybrid funds are a blend of more than one asset class, whereas balanced funds are only a type of hybrid fund.
These funds would work best for first-time investors who are not looking forward to handling their own asset allocations. However, there is some amount of volatility, given the exposure to equity funds.
Conservative hybrid funds are the ones that primarily invest in FD-like investment vehicles. They provide more returns with minimal risks than equities.
These funds invest in stocks with some allocation to FD-like instruments, while most of the investment is spread across pure equity funds.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Here some benefits of investing in the best hybrid mutual funds 2023:
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 29.66% annualized returns in the past three years and 24.09% 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 | ₹1,051Cr |
| 1Y Returns | 16.0% |
Fund Performance: The ICICI Prudential Equity & Debt Fund has given 28.2% annualized returns in the past three years and 18.88% 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 | ₹26,183Cr |
| 1Y Returns | 19.9% |
Fund Performance: The ICICI Prudential Multi Asset Fund has given 27.26% annualized returns in the past three years and 18.55% in the last 5 years. The ICICI Prudential Multi Asset Fund belongs to the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Multi Asset Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹24,931Cr |
| 1Y Returns | 19.7% |
Fund Performance: The HDFC Balanced Advantage Fund has given 26.47% annualized returns in the past three years and 17.41% in the last 5 years. The HDFC Balanced Advantage Fund belongs to the Hybrid category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Balanced Advantage Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹63,981Cr |
| 1Y Returns | 22.7% |
Fund Performance: The Quant Absolute Fund has given 25.7% annualized returns in the past three years and 21.92% 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 | ₹1,354Cr |
| 1Y Returns | 6.7% |
Fund Performance: The ICICI Prudential Balanced Advantage Fund has given 13.85% annualized returns in the past three years and 12.54% in the last 5 years. The ICICI Prudential Balanced Advantage Fund belongs to the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Balanced Advantage Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹49,871Cr |
| 1Y Returns | 12.8% |
Fund Performance: The Kotak Equity Savings Fund has given 11.8% annualized returns in the past three years and 10.74% in the last 5 years. The Kotak Equity Savings Fund belongs to the Hybrid category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Equity Savings Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹3,292Cr |
| 1Y Returns | 12.8% |
Fund Performance: The Kotak Debt Hybrid Fund has given 11.6% annualized returns in the past three years and 12.13% 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 ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹1,999Cr |
| 1Y Returns | 11.4% |
Fund Performance: The SBI Conservative Hybrid Fund has given 11.01% annualized returns in the past three years and 10.87% in the last 5 years. The SBI Conservative Hybrid Fund belongs to the Hybrid category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹8,916Cr |
| 1Y Returns | 10.3% |
Fund Performance: The ICICI Prudential Equity Savings Fund has given 9.95% annualized returns in the past three years and 8.87% in the last 5 years. The ICICI Prudential Equity Savings Fund belongs to the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Equity Savings Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,325Cr |
| 1Y Returns | 9.3% |
Fund Performance: The Invesco India Arbitrage Fund has given 5.92% annualized returns in the past three years and 5.85% in the last 5 years. The Invesco India Arbitrage Fund belongs to the Hybrid category of Invesco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Invesco India Arbitrage Fund via lump sum is ₹1,000 and via SIP is ₹500.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹8,678Cr |
| 1Y Returns | 8.1% |
Fund Performance: The Edelweiss Arbitrage Fund has given 5.76% annualized returns in the past three years and 5.9% 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 ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹7,036Cr |
| 1Y Returns | 8.0% |
Fund Performance: The Bank of India Mid & Small Cap Equity & Debt Fund has given 26.83% annualized returns in the past three years and 20.26% in the last 5 years. The Bank of India Mid & Small Cap Equity & Debt Fund belongs to the Hybrid category of BOI AXA Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Bank of India Mid & Small Cap Equity & Debt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹493Cr |
| 1Y Returns | 31.1% |
Fund Performance: The JM Equity Hybrid Fund has given 23.03% annualized returns in the past three years and 16.18% in the last 5 years. The JM Equity Hybrid Fund belongs to the Hybrid category of JM Financial Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in JM Equity Hybrid Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹93Cr |
| 1Y Returns | 28.0% |
Fund Performance: The JM Aggressive Hybrid Fund has given 21.86% annualized returns in the past three years and 16.26% in the last 5 years. The JM Aggressive Hybrid Fund belongs to the Hybrid category of JM Financial Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in JM Aggressive Hybrid Fund via lump sum is ₹1,000 and via SIP is ₹100.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹93Cr |
| 1Y Returns | 27.6% |
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