Best ICICI Prudential Hybrid Mutual Funds

ICICI Prudential Mutual Funds started in 1993 with a joint venture between ICICI Bank and Prudential PLC from the UK. Currently, the company is one of India’s top five AMCs.

The AMC has more than 40 mutual fund schemes under its portfolio, along with the best ICICI Prudential hybrid mutual funds.

A hybrid or balanced fund is a sub-type of mutual fund that focuses on investing in more than one type of security. The aim here is to offer a balanced return to investors by balancing equity and debt investments.

The best ICICI Prudential hybrid mutual fund generates wealth appreciation in the long run and income in the short run through a balanced portfolio. Fund managers distribute the investment in different debt and equity instruments depending on the scheme’s investment objective.

Additionally, hybrid funds are classified based on their asset allocation. For instance, in a debt-based fund, 60% or more of the total investment is in the debt market, and the rest is in equity shares. In contrast, for equity-oriented funds, this allocation is the opposite.

Furthermore, monthly income plans mainly invest 15-20% of the fund corpus in the equity market, ensuring higher returns. Investors also get regular income in the form of dividends and interest payouts. An arbitrage fund is another variant of hybrid funds where fund managers purchase stocks at a reduced price in one market and sell them at a higher margin in another market.

A major advantage of hybrid funds is their balanced approach. The equity component is likely to generate more profits, while the debt components offer a safety net against market volatility. Nonetheless, the exact positives and negatives vary depending on your choice of scheme.

The best ICICI Prudential hybrid mutual funds 2023 includes more than 5 schemes in its portfolio, offering different options like balanced advantage, multi-asset, and arbitrage schemes.