Understanding Basics of Hybrid Funds

What are Hybrid Funds ?

Hybrid Funds or Balanced Funds are type of Mutual Funds which Invest both in debt and equity Investments. Hybrid Funds are Further classified into Several Categories based on the Ratio of Investment between Equity and Debt Investments. Hybrid Funds or Balanced Funds are Safer Compared to Equity Funds.

Hybrid Funds or Balanced Funds have the Advantages of Giving higher returns by Investing in Equity and at the same time it protects the capital Investment by Investing in Debt Funds.

Types of Hybrid Funds

  • Aggressive Hybrid Funds
  • Balanced Hybrid Funds
  • Conservative Hybrid Funds
  • Balanced Advantage Funds
  • Arbitrage Funds
  • Equity Saving Funds

Who Should Invest in Hybrid Funds ?

Investor Looking to take a Moderate Risk should Start with Hybrid Funds. Hybrid are less risker compared with pure equity funds so for a First Time Investor who is Looking to protect his Capital and Achieve Higher Returns over a Long term can Invest in Hybrid or Balanced Funds.

Taxation on Hybrid Funds

Hybrid Funds are Taxed based on the Percentage of Asset Holdings in Equity or Debt. If a Fund is Holding more than 60% of the Investments in Equity then for taxation its Considered as an Equity Fund. If a Fund is Holding more than 40% of the Investments in Debt then for taxation its Considered as an Debt Fund.

Selection of Hybrid Funds

The  Selection of hybrid Funds depends on each every Individuals Risk Taking appetite, Duration or Tenure of the Investment. For a Conservative Investor and Lesser Duration of Investment they can Choose a Conservative Hybrid Funds or Arbitrage Funds. For an Investor Looking to Take Higher Risk and Longer Duration of Investment they Can Choose to Invest in Balanced Hybrid Funds, Aggressive Hybrid Funds, Equity Savings Fund, Balanced Advantage Funds.


You Invest, Check NAV, Latest Information on Hybrid Funds, Compare Returns of Different Hybrid Funds through our website www.fundsinn.com/mutual-funds/hybrid-mutual-funds


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