Best Navi Hybrid Mutual Funds

Navi Mutual Fund is a SEBI-registered fund house sponsored by Anmol Conmo Broking Private Limited. Navi AMC Limited acts as its investment manager. According to the latest data, total assets managed by this AMC stood at Rs.697.75 crore.

This AMC offers approximately 10 mutual fund schemes distributed across equity, debt, and hybrid fund categories. This includes the best Navi hybrid mutual funds.

Hybrid funds make investments in a combination of asset classes. Majorly, these investments are made in debt and equity securities even though there are funds that invest in international stocks, real estate, and gold. These funds grant the investors an opportunity for portfolio diversification via a single investment vehicle. 

The main objective of these funds is to offer the advantages of both debt and equity funds. An appropriate blend of these two components lowers the risk factor involved in pure equity funds while providing high returns than a standard debt fund. In addition, the ratio of bonds and stocks can either stay fixed or vary equivalently over a period. Thus, these funds offer average capital appreciation against low risk and stable returns. 

An investor’s investment objective and risk preferences form the determining factors when it comes to choosing the top Navi hybrid mutual funds. A fund manager allocates to different proportions in debt and equity instruments per the scheme’s investment objectives. To take advantage of market movements, the manager might sell or purchase securities. 

Hybrid mutual funds come with a stated objective like moderate, aggressive, or conservative growth, indicating the type of growth and the associated risk level. A properly managed hybrid fund aims to generate long-term capital appreciation and short-term income by appropriately distributing the investment corpus across various asset types. 

For long-term growth, a hybrid fund makes investments in stocks. At the same time, it invests in government bonds and debt instruments to generate income and offers stability in the short run.

The best Navi hybrid mutual fund schemes currently offer 3 hybrid fund schemes.

Besides being familiar with the facts mentioned above, investors must also note the taxability involved in the best Navi hybrid mutual funds 2023.

Taxability

Long-term Capital Gains Tax: Long-term capital gains tax or LTCG tax applies at a 10% rate on equity-oriented hybrid mutual funds. However, gains up to Rs.1 lakh is exempt from taxation. On the other hand, the LTCG on debt-based mutual fund units, held for over 3 years, is taxed at 20% after indexation.

Short-term Capital Gains Tax: STCG tax is levied at a 15% rate on short-term capital gains of an equity-based hybrid MF. For debt-oriented hybrid funds held for shorter than 3 years, the STCG is added to an investor’s taxable income and charged per the slab rate.

TDS: The capital gains arising from hybrid mutual funds are not applicable for TDS. However, 10% tax deducted at source applies to dividends exceeding Rs.5000. 

Factors to Consider Before Investing

In addition to being aware of the taxability involved in the best Navi hybrid mutual funds, an investor must also consider the below-mentioned parameters:

Investment horizon: Deciding on the investment horizon is essential to determine a suitable Navi hybrid MF scheme. Debt funds offer stable and decent returns over a short to mid-term horizon. Whereas an equity-dominated scheme offers balanced, high returns in the long-term, usually 5 years or longer. 

Equity exposure: It is imperative to know the equity exposure for a given hybrid mutual fund. This would help assess their risk tolerance levels and choose the funds whose risk levels match one’s needs and risk profile.

Past performance of a fund: Looking into a particular fund’s past performance is considered a healthy practise even though they are not indicative of future returns. However, they can offer an overview of how a scheme generated returns under varying market conditions.

Expense ratio: Mutual fund houses charge a certain % of the fee from investors to manage a scheme. This fee is known as the expense ratio, which has a direct bearing on your take-home returns. An investor can compare the expense ratios of different schemes to determine the top Navi hybrid funds.

Experience of the fund manager: The prospects of profitability for an investor are determined a lot by the experience of a fund manager. That is why most investors put considerable emphasis on the competence and expertise of a fund manager. 

Individuals venturing into the field of investment for the first time might find it daunting to choose a suitable scheme out of the best Navi hybrid mutual funds. To that end, the aforesaid points about hybrid mutual funds can help ease the task for them.