Best HDFC Hybrid Mutual Funds

HDFC began operations as a joint venture between Standard Life Investment Limited (SLI) and Housing Development Finance Corporation (HDFC). It was incorporated in 1999. 

The asset management company offers more than 100 mutual fund schemes under various channels. These comprise ETFs, debt schemes, equity schemes, and a number of the best HDFC hybrid mutual funds, among others.

Hybrid funds are a type of mutual fund that invests in different securities, predominantly debt and equity. These funds operate on three key principles: allocation, correlation, and diversification.

A hybrid fund enables allocation by distributing wealth among various asset classes. It then facilitates correlation by way of returns’ co-movement. The best HDFC hybrid mutual funds achieve diversification by incorporating several assets in their portfolio. 

Hybrid mutual funds invest in equity and debt instruments in a 40%-60% proportion. Such a blend of instruments allows the top HDFC hybrid mutual funds to offer higher returns as compared to a regular debt MF scheme. Furthermore, as these funds dilute the associated risks of investment, they are considered safer than other high-risk and aggressive investment tools, such as equity mutual funds.

The best HDFC hybrid mutual funds 2025 are of two types, namely equity-oriented and debt-oriented. Equity-based hybrid funds invest primarily in stocks of companies that exhibit high-growth potential. On the other hand, debt-based hybrid mutual funds predominantly comprise investments in fixed-income securities, such as debentures, commercial papers, government bonds, etc.

Prospective investors can choose from more than 5 schemes under the category of HDFC hybrid mutual funds.

However, the choice of investment should depend upon an investor’s investment objective and appetite for risk. Additionally, a fundamental knowledge of several factors is essential when investing in the best HDFC hybrid mutual funds.