Top Hybrid Mutual Funds performance: Hybrid funds are emerging as a great and balanced option for people looking to invest in mutual funds. This fund is ideal for investors who want to take advantage of the equity market rally and also want the safety of a debt fund. The biggest feature of hybrid fund is that it allows you to invest money in different asset classes under a single scheme. It is important for every investor to know about hybrid mutual funds to keep their portfolio stable amid market fluctuations.

Definition of Hybrid Fund

Hybrid mutual fund is an investment vehicle that invests money in both equity (shares) and debt (bonds) assets. This mix helps reduce risk because when the stock market falls, the debt portion provides stability to the portfolio. In other words, it gives investors the opportunity to take advantage of diversification through a single fund.

balance of risk and safety

These funds are considered safer than pure equity funds as their investments are not limited to shares only. Due to the presence of debt instruments, it has low volatility, which provides relief to investors with moderate risk appetite. However, due to this additional layer of protection, returns may be slightly lower or normal compared to pure equity funds.

5 year top returns

If we look at the data of the last five years, some hybrid funds have performed brilliantly and made investors rich. Quant Multi Asset Allocation Fund has given the highest annual return (CAGR) of around 26.85%, which is considered quite attractive. Whereas ICICI Prudential Multi Asset Fund and Equity and Debt Fund have also given returns of more than 22% and 21%.

large asset size funds

The Asset Under Management (AUM) of HDFC Balanced Advantage Fund is more than Rs 1 lakh crore, which reflects its popularity and investor confidence. Similarly, funds like Nippon India and Edelweiss have also given stable returns between 17% to 18%. The expense ratio of these funds also varies, which directly impacts the total profits of the investor.

Should you invest?

If you are looking for an investment option that is safer than equity funds and gives better returns than FDs, then this fund is for you. However, do not make investment decisions based only on past performance or returns as market risks are always there. It is always wise to understand your goals and consult a certified financial advisor before you start investing.