Hybrid Funds

Hybrid funds invest in a blend of stocks and bonds (fixed-income instruments). This is a great product to balance risk and return in a portfolio, let’s demystify hybrid funds in simple terms.

What are Hybrid Funds?

Hybrid funds, as the name suggests, combine the elements of equity and debt in a single investment vehicle. These funds aim to provide investors with a diversified portfolio, allowing them to benefit from both the potential growth of stocks and the stability of bonds.

Why Consider Hybrid Funds?

1. Diversification: By investing in a mix of asset classes, hybrid funds tend to diversify risk.

2. Risk Management: The combination of equities and debt helps manage risk, providing stability during market downturns.

3. Flexibility: A few Hybrid funds offer flexibility in adjusting the asset allocation based on market conditions. A few hybrid funds also add arbitrage in equity as a tool to make the scheme flexible and reduce volatility.

Funds	Returns (last 10 yrs) (as of 13 feb 24)
Tata Hybrid Equity Fund – Regular Plan-Growth	14.03%
HDFC Hybrid Debt Fund – Growth	10.46%
HSBC Equity Savings Fund – Growth	9.49%
ICICI Prudential Balanced Advantage Fund – Growth	12.93%

Conclusion

Hybrid funds in India blend equity and debt to offer a versatile investment strategy. At Mutualfundwala, we specialize in helping you understand these funds and identify the best options for your financial needs.

Whether you’re looking to balance risk or enhance returns, our team provides tailored advice to suit your objectives. Reach out to Mutualfundwala today for personalized support and take the next step towards a well-balanced investment portfolio!