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Best Hybrid Mutual Funds (2023): Diversify and Thrive

Hybrid mutual funds

Investors frequently look for stability, growth, and diversification in their investment portfolios in the fast-paced financial environment of today. A balanced approach is provided by best hybrid mutual funds, which incorporate aspects of both debt and equity instruments. The goal of these funds is to manage risk while offering investors the advantages of diversification. We will examine the world of best hybrid mutual funds in this post, as well as some of the greatest choices accessible to investors and their advantages.

Best Hybrid Mutual Funds Overview

Name of the Scheme Features
Navi Equity Hybrid Fund – Direct Plan-Growth NAV: ₹14.31

AUM: ₹82.52 Crore

Expense Ratio: 2.33%

Quant Absolute Fund – Direct Plan-Growth NAV: ₹305.61

AUM: ₹1013.42 Crore

Expense Ratio: 0.56%

BOI AXA Mid and Small Cap Equity and Debt Fund  NAV: ₹23.73

AUM: ₹380.12 Crore

Expense Ratio: 1.92%

Kotak Equity Hybrid – Direct Plan-Growth NAV: ₹46.64

AUM: ₹3269.24 Crore

Expense Ratio: 0.58%

ICICI Prudential Equity and Debt Fund NAV: ₹261.31

AUM: ₹21232.91 Crore

Expense Ratio: 1.2%

BNP Paribas Substantial Equity Hybrid Fund NAV: ₹20.45

AUM: ₹772.69 Crore

Expense Ratio: 0.61%

DSP Equity and Bond Fund NAV: ₹248.98

AUM: ₹7358.60 Crore

Expense Ratio: 0.78%

Axis Equity Hybrid Fund NAV: ₹15.34

AUM: ₹1699.11 Crore

Expense Ratio: 0.89%

Canara Robeco Equity Hybrid Fund NAV: ₹268.66

AUM: ₹8235.53 Crore

Expense Ratio: 0.63%

Mirae Asset Hybrid Equity Fund NAV: ₹24.73

AUM: ₹6952.71 Crore

Expense Ratio: 0.36%

Bandhan Hybrid Equity Fund NAV: ₹18.40

AUM: ₹560.46 Crore

Expense Ratio: 1.15%

Tata Hybrid Equity Fund NAV: ₹345.42

AUM: ₹3166.03 Crore

Expense Ratio: 1.05%

PGIM India Hybrid Equity Fund NAV: ₹93.59

AUM: ₹217.11 Crore

Expense Ratio: 2.38%

JM Equity Hybrid Fund NAV: ₹78.30

AUM: ₹11.57 Crore

Expense Ratio: 1.37%

Union Hybrid Equity Fund NAV: ₹12.22

AUM: ₹524.18 Crore

Expense Ratio: 2.58%

How to Invest in Hybrid Mutual Funds?

  • Selecting the Right Fund: When choosing a hybrid fund, investors can take their time horizon, risk tolerance, and investment goals into account. To choose the best fund, they can also ask a financial advisor for assistance.
  • Understanding Fees and Expenses: It’s a good idea to be aware of the costs and fees associated with investing in hybrid funds, including exit loads, management fees, and other expenses.
  • Monitoring Performance: To make sure that the performance of their hybrid funds is in line with their investment objectives, investors can keep a close eye on it.
  • Choosing the Best Hybrid Fund: Investors can select the best hybrid mutual fund by taking into account their risk tolerance and investing objectives. On the basis of their expenses and performance, they can also compare funds.

Investing in the Best Hybrid Mutual Funds Benefits

  • Exposure to More than a Single Asset Class: Investing in a single mutual fund scheme allows individuals to gain exposure to multiple asset classes, as hybrid equity funds distribute financial assets among various asset classes. 
  • Active Management of Portfolio Risk: Fund managers of hybrid funds adjust the allocation between non-correlated asset classes, debt, and equity, in order to control portfolio risk. 
  • Portfolio Diversification: By investing in a variety of asset classes and their subclasses, hybrid funds provide portfolio diversification. For instance, stocks with a range of market capitalizations may be included in the equity component. 
  • Access to Professional Expertise: Experienced fund managers assist in adjusting the portfolio of these mutual fund schemes to reflect current market conditions. Investors are relieved of the need to constantly track the performance of securities as a result. Furthermore, people are spared from having to decide what to invest in, which can be difficult given how volatile the market is. 

Features of Best Hybrid Mutual Funds

  • Potential Higher Returns than FDs: In general, hybrid mutual funds yield higher returns than fixed deposits (FDs). These funds give investors the opportunity to profit from both the stability of debt investments and the potential of equity investments. While debt funds offer stability and protect a portfolio from possible risks, equity investors can anticipate strong returns. 
  • Diversification: Essentially, investing in hybrid funds is a way to diversify one’s sources of income. These funds provide investors with the chance to have a well-diversified and balanced portfolio because they invest in a variety of asset classes. 
  • Dynamic: Certain hybrid funds exhibit volatility in contrast to other assets such as fixed deposits. They make it possible for fund managers and investors to respond quickly to changes in price.

Factors to Consider Before Investing in Best Hybrid Mutual Funds 

  • Expense Ratio: The expense ratio is a yearly charge that investors in mutual fund schemes pay to asset management companies (AMCs) in order to offset fund operating expenses. Thus, before choosing a hybrid mutual fund scheme, be sure to compare the expense ratios of several schemes. Recall that there are other factors besides the expense ratio. There are additional elements to take into account.
  • Investment Objective: This is a reference to the financial objectives you wish to achieve. It might be saving money for your child’s college education or creating a retirement fund. Before making an investment, decide what your investment objective is and make sure it aligns with the fund’s mission. 
  • Risk Appetite: Therefore, before making an investment in the best hybrid mutual funds, investors must evaluate their risk tolerance. High-risk investors may want to look into putting their money into a scheme that focuses mostly on stocks and securities linked to stocks.
  • Past Returns: When considering a hybrid mutual funds, it is important for investors to review the fund’s past performance and contrast it with other schemes in the same class. A scheme’s historical returns show how well the fund has been managed. Having said that, bear in mind that a fund’s past performance does not necessarily predict its future results.  
  • The Fund Manager’s Track Record: It is imperative for investors to take the fund manager’s experience and track record into account when selecting a hybrid mutual funds. They all actively participate in all buy-and-sell decisions, after all. Put another way, a fund manager’s effectiveness determines whether or not a scheme will be able to achieve its set goal. 

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