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Best Hybrid Mutual Fund

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Hybrid Mutual Fund – Best Hybrid Mutual Fund

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The below table shows a list Of the Hybrid Mutual Fund – Best Hybrid Mutual Funds Based on AUM, NAV and minimum SIP.

NameAUM (Cr)NAV (Rs)Minimum SIP (Rs)
SBI Equity Hybrid Fund71495.31305.725000
ICICI Pru Equity & Debt Fund39090.93414.02100
HDFC Hybrid Equity Fund24596.01123.892500
Canara Rob Equity Hybrid Fund11002.30393.37100
DSP Equity & Bond Fund10093.56379.44100
SBI Conservative Hybrid Fund9995.5275.271500
Mirae Asset Aggressive Hybrid Fund9294.4936.27100
Aditya Birla SL Equity Hybrid ’95 Fund7842.491658.66100
Kotak Equity Hybrid Fund6355.0170.93100
HSBC Aggressive Hybrid Fund5893.0662.301500

Introduction To Top Hybrid Mutual Funds

SBI Equity Hybrid Fund  

SBI Equity Hybrid Fund is an Aggressive Hybrid mutual fund scheme from SBI Mutual Fund. This fund is operational for 11 years and 8 months and was launched on January 1, 2013.

SBI Equity Hybrid Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹71,495.31 crores, a 5-year CAGR of 16.90%, an exit load of 1% and an expense ratio of 0.73%. The SEBI risk category is Very High. Its asset allocation includes 72.63% in Equity, 11.62% in Government Securities, 9.06% in Corporate Debt, 3.77% in Cash & Equivalents and 2.92% in Others.

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ICICI Prudential Equity & Debt Fund  

ICICI Prudential Equity & Debt Fund is an Aggressive Hybrid mutual fund scheme from ICICI Prudential Mutual Fund. This fund is operational for 11 years and 7 months and was launched on January 1, 2013.

ICICI Prudential Equity & Debt Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹39,090.93 crores, a 5-year CAGR of 24.97%, an exit load of 1% and an expense ratio of 0.99%. The SEBI risk category is Very High. Its asset allocation includes 69.92% in Equity, 8.30% in Corporate Debt, 7.94% in Cash & Equivalents, 7.87% in Government Securities and 5.97% in Others.

HDFC Hybrid Equity Fund  

HDFC Hybrid Equity Fund is an Aggressive Hybrid mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, and it was launched on January 1, 2013.

HDFC Hybrid Equity Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹24,596.01 crores, a 5-year CAGR of 18.38%, an exit load of 1% and an expense ratio of 1.02%. The SEBI risk category is Very High. Its asset allocation includes 68.21% in Equity, 19.28% in Corporate Debt, 7.82% in Government Securities, 1.46% in Cash & Equivalents and 3.23% in Others.

Canara Robeco Equity Hybrid Fund  

Canara Robeco Equity Hybrid Fund is an Aggressive Hybrid mutual fund scheme from Canara Robeco Mutual Fund. This fund is operational for 11 years and 8 months and was launched on January 1, 2013.

Canara Robeco Equity Hybrid Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹11,002.30 crores, a 5-year CAGR of 19.66%, an exit load of 1% and an expense ratio of 0.56%. The SEBI risk category is Very High. Its asset allocation includes 73.08% in Equity, 11.75% in Government Securities, 11.10% in Corporate Debt, 0.22% in Cash & Equivalents and 3.85% in Others.

DSP Equity & Bond Fund  

DSP Equity & Bond Fund is an Aggressive Hybrid mutual fund scheme from DSP Mutual Fund. This fund was operational for 11 years and 8 months and was launched on January 1, 2013.

DSP Equity & Bond Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹10,093.56 crores, a 5-year CAGR of 19.45%, an exit load of 1% and an expense ratio of 0.68%. The SEBI risk category is Very High. Its asset allocation includes 70.41% in Equity, 17.05% in Corporate Debt, 10.48% in Government Securities, 1.35% in Cash & Equivalents and 0.71% in Others.

SBI Conservative Hybrid Fund  

SBI Conservative Hybrid Fund is a Conservative Hybrid mutual fund scheme from SBI Mutual Fund. This fund was operational for 11 years and 8 months and was launched on January 1, 2013.

SBI Conservative Hybrid Fund falls under the Conservative Hybrid Fund category with an AUM of ₹9,995.52 crores, a 5-year CAGR of 12.46%, an exit load of 1% and an expense ratio of 0.62%. The SEBI risk category is High. Its asset allocation includes 51.94% in Corporate Debt, 24.21% in Equity, 18.77% in Government Securities, 2.83% in Cash & Equivalents and 2.25% in Others.

Mirae Asset Aggressive Hybrid Fund  

Mirae Asset Aggressive Hybrid Fund is an Aggressive Hybrid mutual fund scheme from Mirae Asset Mutual Fund. This fund was operational for 9 years and 1 month and was launched on July 29, 2015.

Mirae Asset Aggressive Hybrid Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹9,294.49 crores, a 5-year CAGR of 18.88%, an exit load of 1% and an expense ratio of 0.39%. The SEBI risk category is Very High. Its asset allocation includes 73.66% in Equity, 13.54% in Corporate Debt, 7.38% in Government Securities, 3.46% in Cash & Equivalents and 2.96% in Others.

Aditya Birla Sun Life Equity Hybrid ’95 Fund  

Aditya Birla Sun Life Equity Hybrid ’95 Fund is an Aggressive Hybrid mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund was operational for 11 years and 8 months and was launched on January 1, 2013.

Aditya Birla Sun Life Equity Hybrid ’95 Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹7,842.49 crores, a 5-year CAGR of 16.99%, an exit load of 1% and an expense ratio of 1.06%. The SEBI risk category is Very High. Its asset allocation includes 76.62% in Equity, 10.63% in Corporate Debt, 8.20% in Government Securities, 2.81% in Cash & Equivalents and 1.74% in Others.

Kotak Equity Hybrid Fund  

Kotak Equity Hybrid Fund is an Aggressive Hybrid mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 9 years and 10 months, having been launched on November 1, 2014.

Kotak Equity Hybrid Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹6,355.01 crores, a 5-year CAGR of 22.47%, an exit load of 1% and an expense ratio of 0.44%. The SEBI risk category is Very High. Its asset allocation includes 73.62% in Equity, 18.70% in Government Securities, 4.41% in Corporate Debt, 3.18% in Cash & Equivalents and 0.09% in Others.

HSBC Aggressive Hybrid Fund  

HSBC Aggressive Hybrid Fund is an Aggressive Hybrid mutual fund scheme from HSBC Mutual Fund. This fund was operational for 11 years and 8 months and was launched on January 1, 2013.

HSBC Aggressive Hybrid Fund falls under the Aggressive Hybrid Fund category with an AUM of ₹5,893.06 crores, a 5-year CAGR of 18.43%, an exit load of 1% and an expense ratio of 0.81%. The SEBI risk category is Very High. Its asset allocation includes 75.86% in Equity, 10.96% in Government Securities, 9.83% in Corporate Debt, 3.35% in Cash & Equivalents and 0.09% in Others.

What Is a Hybrid Mutual Fund?

A Hybrid Mutual Fund is a type of mutual fund that invests in a mix of asset classes, typically combining equities and fixed-income securities. These funds aim to provide investors with the benefits of both growth potential from stocks and stability from bonds, offering a balanced approach to investing.

Hybrid funds can vary in their allocation between equity and debt, depending on the fund’s specific strategy and market conditions. This flexibility allows fund managers to adjust the portfolio based on their market outlook and risk management considerations.

These funds are designed to provide diversification within a single investment vehicle, potentially offering smoother returns compared to pure equity or debt funds. They can be suitable for investors seeking a balance between growth and income.

Features Of Best Hybrid Mutual Fund

The main features of the best Hybrid Mutual Funds include balanced asset allocation, diversification, professional management, flexibility and the potential for moderate returns with managed risk. These funds offer a comprehensive investment solution for investors seeking a mix of growth and stability.

  • Balanced asset allocation: Hybrid funds invest in both equity and debt instruments, providing a balance between growth potential and income stability.
  • Diversification: These funds offer inherent diversification across asset classes, potentially reducing overall portfolio risk.
  • Professional management: Experienced fund managers actively manage the portfolio, adjusting allocations based on market conditions and economic outlook.
  • Flexibility: Hybrid funds can adjust their equity-debt mix within predefined limits, allowing them to adapt to changing market scenarios.

Top Hybrid Mutual Funds In India Based On Expense Ratio

The table below shows the top Hybrid Mutual Funds In India Based On Expense ratios based on the lowest to highest expense ratio.

NameExpense Ratio (%)Minimum SIP (Rs)
Mirae Asset Aggressive Hybrid Fund0.39100
Kotak Equity Hybrid Fund0.44100
Canara Rob Equity Hybrid Fund0.56100
SBI Conservative Hybrid Fund0.621500
DSP Equity & Bond Fund0.68100
SBI Equity Hybrid Fund0.735000
HSBC Aggressive Hybrid Fund0.811500
ICICI Pru Equity & Debt Fund0.99100
HDFC Hybrid Equity Fund1.022500
Aditya Birla SL Equity Hybrid ’95 Fund1.06100

Best Hybrid Mutual Fund Based On 3Y CAGR

The table below shows the Best Hybrid Mutual Fund Based On 3Y CAGR based on the Highest 3Y CAGR.

NameCAGR 3Y (Cr)Minimum SIP (Rs)
ICICI Pru Equity & Debt Fund25.24100
Kotak Equity Hybrid Fund19.78100
HSBC Aggressive Hybrid Fund17.251500
HDFC Hybrid Equity Fund16.332500
Mirae Asset Aggressive Hybrid Fund15.88100
Canara Rob Equity Hybrid Fund15.64100
DSP Equity & Bond Fund15.61100
Aditya Birla SL Equity Hybrid ’95 Fund14.18100
SBI Equity Hybrid Fund14.055000
SBI Conservative Hybrid Fund11.611500

Top Hybrid Mutual Funds Based On Exit Load

The table below shows the Top Hybrid Mutual Funds Based On Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

NameAMCExit Load (%)
ICICI Pru Equity & Debt FundICICI Prudential Asset Management Company Limited1
Kotak Equity Hybrid FundKotak Mahindra Asset Management Company Limited1
HSBC Aggressive Hybrid FundHSBC Global Asset Management (India) Private Limited1
HDFC Hybrid Equity FundHDFC Asset Management Company Limited1
Mirae Asset Aggressive Hybrid FundMirae Asset Investment Managers (India) Private Limited1
Canara Rob Equity Hybrid FundCanara Robeco Asset Management Company Limited1
DSP Equity & Bond FundDSP Investment Managers Private Limited1
Aditya Birla SL Equity Hybrid ’95 FundAditya Birla Sun Life AMC Limited1
SBI Equity Hybrid FundSBI Funds Management Limited1
SBI Conservative Hybrid FundSBI Funds Management Limited1

Hybrid Mutual Funds Returns

The table below shows Hybrid Mutual Funds Returns Based on 1Y return.

NameAbsolute Returns  1Y (%)Minimum SIP (Rs)
ICICI Pru Equity & Debt Fund37.81100
HSBC Aggressive Hybrid Fund35.611500
Kotak Equity Hybrid Fund34.62100
DSP Equity & Bond Fund31.35100
Canara Rob Equity Hybrid Fund30.56100
Aditya Birla SL Equity Hybrid ’95 Fund29.61100
Mirae Asset Aggressive Hybrid Fund28.68100
SBI Equity Hybrid Fund26.595000
HDFC Hybrid Equity Fund23.232500
SBI Conservative Hybrid Fund15.241500

Historical Performance Of Hybrid Mutual Fund

The table below shows Historical Performance Of Hybrid Mutual Funds Based on 5Y return

NameCAGR 5Y (Cr)Minimum SIP (Rs)
ICICI Pru Equity & Debt Fund24.97100
Kotak Equity Hybrid Fund22.47100
Canara Rob Equity Hybrid Fund19.66100
DSP Equity & Bond Fund19.45100
Mirae Asset Aggressive Hybrid Fund18.88100
HSBC Aggressive Hybrid Fund18.431500
HDFC Hybrid Equity Fund18.382500
Aditya Birla SL Equity Hybrid ’95 Fund16.99100
SBI Equity Hybrid Fund16.905000
SBI Conservative Hybrid Fund12.461500

Factors To Consider When Investing In Hybrid Mutual Funds

When investing in Hybrid Mutual Funds, consider the fund’s asset allocation, historical performance, expense ratio, fund manager expertise and risk tolerance. Also, evaluate the fund’s investment strategy and how it aligns with your financial goals.

  • Asset allocation: Examine the fund’s equity-debt mix and ensure it aligns with your risk appetite and investment objectives.
  • Historical performance: Analyze the fund’s returns over various periods and compare them with its benchmark and category average.
  • Expense ratio: Compare expense ratios across different hybrid funds. Lower expenses can contribute to better overall returns.
  • Fund manager expertise: Evaluate the fund manager’s experience and track record in managing hybrid funds.
  • Investment strategy: Understand the fund’s approach to asset allocation and security selection. Ensure it aligns with your investment philosophy.

How To Invest In Top Hybrid Mutual Funds?

To invest in top Hybrid Mutual Funds, start by researching and comparing different funds based on their performance, asset allocation and investment strategy. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Market trends significantly influence Hybrid Mutual Funds due to their mixed portfolio of equity and debt instruments. During bullish equity markets, the equity component of these funds tends to drive performance, while in bearish markets, the debt portion provides stability.

The fund manager’s ability to adjust the asset allocation based on market trends can impact returns. Economic factors, interest rate movements, and sector-specific trends all play a role in shaping the performance of Hybrid Mutual Funds, affecting both their equity and debt components.

How Does Hybrid Mutual Funds Perform In Volatile Markets?

Hybrid Mutual Funds generally demonstrate more stability during volatile markets compared to pure equity funds, due to their balanced portfolio structure. The debt component of these funds acts as a cushion, potentially mitigating losses during equity market downturns.

However, their performance can still be affected by market volatility, especially in the equity portion of the portfolio. The extent of the impact depends on the fund’s specific equity-debt allocation and the fund manager’s ability to navigate market fluctuations through timely asset allocation adjustments.

Advantages Of Hybrid Mutual Funds

The main advantages of Hybrid Mutual Funds include a balanced risk-return profile, diversification, professional management and flexibility. These funds offer a comprehensive investment solution for investors seeking a mix of growth and stability within a single investment vehicle.

  • Balanced risk-return profile: Hybrid funds aim to provide a balance between the growth potential of equities and the stability of debt instruments.
  • Diversification: These funds offer inherent diversification across asset classes, potentially reducing overall portfolio risk.
  • Professional management: Experienced fund managers actively manage the portfolio, adjusting allocations based on market conditions and economic outlook.
  • Flexibility: Hybrid funds can adjust their equity-debt mix within predefined limits, allowing them to adapt to changing market scenarios.

What Are The Disadvantages Of Hybrid Mutual Funds?

The main disadvantages of Hybrid Mutual Funds include the potential for lower returns compared to pure equity funds, complexity in performance evaluation, higher expense ratios and the risk of underperformance in strongly trending markets. These factors should be considered when investing in hybrid funds.

  • Lower return potential: Compared to pure equity funds, hybrid funds may offer lower returns during strong bull markets due to their debt component.
  • Complexity: The mixed portfolio can make it challenging for investors to evaluate performance against a single benchmark.
  • Higher expenses: Hybrid funds may have higher expense ratios compared to pure equity or debt funds due to their more complex management.
  • Underperformance risk: In strongly trending markets (either bullish or bearish), hybrid funds may underperform compared to pure equity or debt funds.

Contribution Of Hybrid Mutual Funds To Portfolio Diversification

Hybrid Mutual Funds contribute significantly to portfolio diversification by offering exposure to both equity and debt instruments within a single investment. This built-in diversification can help balance risk and potentially smooth out returns, especially during periods of market volatility.

By including Hybrid Mutual Funds in a portfolio, investors can achieve a level of asset allocation without having to manually balance multiple funds. This can be particularly beneficial for investors who prefer a simpler approach to diversification or those who are new to investing and seeking a balanced starting point.

Who Should Invest In Hybrid Mutual Funds?

Hybrid Mutual Funds are suitable for investors seeking a balance between growth and stability in their investment portfolio. They are ideal for moderate-risk investors, first-time investors looking for a diversified starting point and those who want professional management of their asset allocation.

These funds can be appropriate for investors with a medium to long-term investment horizon, typically 3-5 years or more. They can also be suitable for conservative investors who want some equity exposure without the full risk of pure equity funds or for those looking to transition from debt to equity investments gradually.

Impact Of Manager Expertise On Hybrid Mutual Funds Performance

The expertise of the fund manager plays a crucial role in the performance of Hybrid Mutual Funds. A skilled manager can add significant value through effective asset allocation decisions, security selection in both equity and debt portions and timely adjustments based on market conditions.

The manager’s ability to analyze both equity and fixed-income markets is vital for hybrid funds. Their expertise in balancing risk and return across asset classes, sector allocation within equities and duration management in the debt portion can greatly influence the fund’s overall performance and risk-adjusted returns.

Types Of Corporate Bonds

The main types of corporate bonds include secured bonds, which are backed by specific assets, and unsecured bonds, which rely on the company’s creditworthiness. Other types include convertible bonds that can be converted into shares, and callable bonds, allowing companies to redeem early.

  • Secured Bonds: These bonds are backed by specific company assets, such as property or equipment, which serve as collateral. In the event of a default, investors have a claim on these assets, making secured bonds relatively safer and less risky compared to unsecured bonds.
  • Unsecured Bonds: Also known as debentures, these bonds are not backed by any collateral and rely solely on the company’s creditworthiness. If the company defaults, bondholders have no claim to specific assets, making these bonds riskier but potentially offering higher returns.
  • Convertible Bonds: These bonds provide the option for investors to convert them into a predetermined number of company shares at a future date. This feature allows investors to benefit from equity growth if the company performs well while still earning fixed interest until conversion.
  • Callable Bonds: Callable bonds give companies the right to redeem the bonds before their maturity date, typically at a premium price. Companies may do this when interest rates drop, allowing them to refinance their debt at a lower cost, but it introduces reinvestment risk for investors.
  • Fixed-rate Bonds: These bonds pay a consistent and predetermined interest rate throughout the life of the bond. Fixed-rate bonds are attractive to investors looking for stable income, but they may be less appealing if inflation or market interest rates rise significantly.
  • Floating-rate Bonds: Unlike fixed-rate bonds, floating-rate bonds have interest rates that are adjusted periodically, often linked to benchmarks like LIBOR or the U.S. Treasury rate. This makes them a good choice for investors looking to hedge against rising interest rates.
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FAQs – Best Hybrid Mutual Funds  

1. What Are Hybrid Mutual Funds?

Hybrid mutual funds are investment schemes that combine both equity and debt instruments, providing a balance of growth and income. They aim to diversify risk by investing in different asset classes. These funds are suitable for investors seeking moderate risk with stable returns.

2. What are the Best Hybrid Mutual Funds?

Best Hybrid Mutual Funds #1: SBI Equity Hybrid Fund
Best Hybrid Mutual Funds #2: ICICI Pru Equity & Debt Fund
Best Hybrid Mutual Funds #3: HDFC Hybrid Equity Fund
Best Hybrid Mutual Funds #4: Canara Rob Equity Hybrid Fund
Best Hybrid Mutual Funds #5: DSP Equity & Bond Fund

These funds are listed based on the Highest AUM.

3. What are the Top Hybrid Mutual Funds?

The top hybrid mutual funds based on expense ratio are the Mirae Asset Aggressive Hybrid Fund, Kotak Equity Hybrid Fund, Canara Rob Equity Hybrid Fund, SBI Conservative Hybrid Fund and DSP Equity & Bond Fund. These funds offer a balanced approach with moderate risk and stable returns.

4. How Does A Hybrid Fund Work?

A Hybrid Fund invests in both equity and debt instruments. The fund manager allocates assets between these two classes based on the fund’s strategy and market conditions. This mix aims to provide growth from equities and stability from debt, balancing potential returns with risk management.

5. What Are The Types Of Hybrid Mutual Funds?

Types of Hybrid Mutual Funds include Balanced Funds, Aggressive Hybrid Funds, Conservative Hybrid Funds, Multi-Asset Allocation Funds, and Arbitrage Funds. Each type has a different equity-debt mix and risk profile, catering to various investor needs and market scenarios.

6. Are Hybrid Mutual Funds Taxable?

Yes, Hybrid Mutual Funds are taxable. The tax treatment depends on the fund’s equity-debt ratio and holding period. Equity-oriented hybrid funds (>65% in equity) are taxed like equity funds, while others are taxed like debt funds. Always consult a tax advisor for specific advice.

7. Is It Safe To Invest In A Hybrid Mutual Fund?

Hybrid Mutual Funds are generally considered safer than pure equity funds but riskier than pure debt funds. They offer a balance of growth and stability. However, all investments carry some risk. The safety level depends on the fund’s specific asset allocation and your investment horizon.

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