Best UTI Hybrid Mutual Funds

UTI Mutual Fund came into existence in 2003 as one of the two divisions of the former Unit Trust of India. Backed by large-scale financial bodies, it is currently the 8th largest fund house in India. As of 2020’s second quarter, the company’s assets under management (AUM) was worth Rs.1.33 lakh crore. It has been one of the country’s leading financial service providers for over 50 years now.

The Asset Management Company (AMC) offers approximately 100+ schemes across various types of funds, including the best UTI hybrid mutual funds.

Also known as balanced funds, hybrid mutual funds invest in multiple fund categories. These funds allocate wealth to more than one asset class, like equity, debt, gold, real estate, etc. Mostly, hybrid mutual funds utilise a combination of investment in equity and debt instruments in varying proportions. 

Including multiple assets in a portfolio facilitates effective diversification. This combination of market instruments also mitigates portfolio risk than equity funds and generates higher returns than debt funds. 

The top UTI hybrid mutual funds combine assets with low correlation and a decent track record. The company offers over 20 hybrid MF schemes for investors to choose from.

There are 2 broad classifications of hybrid MFs based on asset allocation: equity-oriented and debt-oriented. The former invests a higher percentage in the equity market and the rest in debt instruments, cash and cash derivatives. For debt-oriented funds, it is vice versa. These can be further categorised into multi-asset allocation, aggressive hybrid funds, balanced advantage funds, arbitrage, and conservative hybrid funds.