Which hybrid fund is best?

The best hybrid fund will be the one that matches your risk profile. For instance, the Dynamic Asset Allocation Fund / Balanced Advantage Funds category is suitable for investors who wish to free themselves from the hassle of tracking markets by automating their asset allocation. Similarly, Conservative Hybrid Funds are suitable for risk-averse investors whose priority is the safety of capital but are willing to take a small allocation into equities so they can earn better returns than FDs.

What are the advantages of Hybrid Funds?

Advantages of Hybrid Funds include the inherent asset allocation available in these schemes. Hybrid Funds invest in a combination of asset classes like equity, debt, gold, and even international ETFs. Since prices of these asset classes move in opposite directions, your portfolio's risk goes down.

What is the difference between Hybrid and Debt Mutual Funds?

Hybrid Funds invest in a combination of asset classes like equity, debt, gold, and even international ETFs. On the other hand, Debt Funds primarily invest in fixed income securities such as bonds issued by the government and corporates.

What is the difference between Hybrid Fund and Balanced Fund?

There are 7 sub-categories of Hybrid Funds and Balanced Hybrid Fund is one of the 7 sub-categories. Balanced Hybrid Funds invest 40% - 60% of their assets in equities and the rest in debt.

Hybrid Funds

Hybrid Funds invest in a mix of asset classes. Most Hybrid Funds invest in equity and debt although there are funds that have more asset classes like gold, international equities, etc. in their portfolio.

Hybrid Funds allow you to have a diversified portfolio with just one fund
Invest in them for goals you want to achieve in 3 to 5 years
Multi-Asset Funds give you exposure to at least 3 asset classes together

Types of Hybrid Funds

Medium to long term

Aggressive Hybrid
Max up to 75% in stocks
Balanced Hybrid
Max up to 50% in stocks
Equity Savings
Max up to 35% in Debt Securities
Dynamic Asset Allocation
Adjusts the allocation in various asset classes due to market conditions to provide superior returns
Multi Asset Allocation
Invests across multiple asset classes ranging from equity & debt to others
Hybrid FoF
Readymade portfolio of equity and debt funds
Retirement Solutions
Uses asset allocation to build retirement corpus

Funds to park money

Conservative Hybrid
Max up to 35% in stocks
Arbitrage
Capitalizes on ineffecient markets

Best Performing Hybrid Mutual Funds

Scheme Name	Expense Ratio	3Y Return (Annualized)
Quant Multi Asset Allocation Fund #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.75%	23.24% p.a.	Invest on App
ICICI Prudential Retirement Fund - Hybrid Aggressive Plan #NA of NA in Retirement Solutions Unranked ETM Rank: App exclusive	2.15%	21.19% p.a.	Invest on App
Nippon India Multi Asset Allocation Fund #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.36%	20.35% p.a.	Invest on App
Nippon India Multi - Asset Omni FoF #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.1%	20.03% p.a.	Invest on App
Aditya Birla Sun Life Multi - Asset Passive FoF #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	0.59%	19.66% p.a.	Invest on App
UTI Multi Asset Allocation Fund #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.69%	19.6% p.a.	Invest on App
SBI Multi Asset Allocation Fund #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.38%	18.98% p.a.	Invest on App
Aditya Birla Sun Life Multi-Asset Omni FoF #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.17%	18.93% p.a.	Invest on App
ICICI Prudential Multi Asset Fund #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.31%	18.83% p.a.	Invest on App
Kotak Multi Asset Omni FoF #NA of NA in Multi Asset Allocation Unranked ETM Rank: App exclusive	1.07%	18.57% p.a.	Invest on App