Hybrid funds invest in both equity and debt instruments. They aim for wealth appreciation in the long term. Invest in the Best Hybrid Funds with Scripbox.
Learn how Scripbox Recommends funds| Fund Name | 3Y Returns | Expense Ratio |
|---|---|---|
 | 10.7% | 1.23% |
 | 11.0% | 0.66% |
 | 20.3% | 0.70% |
| 14.5% | 1.02% |
 | 12.9% | 0.46% |
| 10.0% | 0.91% |
| 22.9% | 0.74% |
| 20.0% | 0.98% |
| 11.1% | 0.92% |
 | 9.4% | 1.02% |
Note : *NA implies that Fund is relatively new. Not enough data available
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Below are the best hybrid funds in india:
HDFC Hybrid Debt Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 14.3%, a 3 Years return of 10.7% and a 5 Years return of 11.1%. The fund has an expense ratio of 1.2% and an AUM of ₹3320 crores as of 2024-11-29. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 23.10% to equities, 73.74% to debt and 2.49% to other assets.
SBI Equity Savings Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 14.6%, a 3 Years return of 11.0% and a 5 Years return of 11.8%. The fund has an expense ratio of 0.7% and an AUM of ₹5616 crores as of 2024-11-29. It was Launched on 2015-05-27. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 30.64% to equities, 26.11% to debt and 38.24% to other assets.
ICICI Prudential Multi Asset Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 24.7%, a 3 Years return of 20.3% and a 5 Years return of 21.5%. The fund has an expense ratio of 0.7% and an AUM of ₹50648 crores as of 2024-11-29.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 49.80% to equities, 15.28% to debt and 21.91% to other assets.
HDFC Hybrid Equity Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 21.2%, a 3 Years return of 14.5% and a 5 Years return of 16.4%. The fund has an expense ratio of 1.0% and an AUM of ₹24068 crores as of 2024-11-29. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 69.54% to equities, 28.47% to debt and 1.03% to other assets.
Edelweiss Balanced Advantage Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 21.6%, a 3 Years return of 12.9% and a 5 Years return of 16.3%. The fund has an expense ratio of 0.5% and an AUM of ₹12306 crores as of 2024-11-29.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 66.49% to equities, 27.09% to debt and 6.20% to other assets.
ICICI Prudential Regular Savings Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 14.1%, a 3 Years return of 10.0% and a 5 Years return of 10.5%. The fund has an expense ratio of 0.9% and an AUM of ₹3220 crores as of 2024-11-29.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 21.69% to equities, 73.73% to debt and 3.06% to other assets.
HDFC Balanced Advantage Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 26.6%, a 3 Years return of 22.9% and a 5 Years return of 20.5%. The fund has an expense ratio of 0.7% and an AUM of ₹94866 crores as of 2024-11-29. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 49.76% to equities, 29.39% to debt and 19.38% to other assets.
ICICI Prudential Equity & Debt Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 26.6%, a 3 Years return of 20.0% and a 5 Years return of 21.9%. The fund has an expense ratio of 1.0% and an AUM of ₹40203 crores as of 2024-11-29.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 66.21% to equities, 21.25% to debt and 10.57% to other assets.
HDFC Equity Savings Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 15.4%, a 3 Years return of 11.1% and a 5 Years return of 12.0%. The fund has an expense ratio of 0.9% and an AUM of ₹5463 crores as of 2024-11-29. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 31.17% to equities, 24.36% to debt and 42.26% to other assets.
Aditya Birla Sun Life Regular Savings Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 13.9%, a 3 Years return of 9.4% and a 5 Years return of 10.4%. The fund has an expense ratio of 1.0% and an AUM of ₹1425 crores as of 2024-11-29.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 22.27% to equities, 72.46% to debt and 3.02% to other assets.
A Mutual Fund in itself offers diversification when compared to pure equities. However, hybrid funds are a type of mutual fund that offers diversification across asset classes. These funds invest in both equity and debt instruments. It helps investors realize benefits from both the segments. The main motto of hybrid funds is to balance the risk-reward ratio and optimize return on investment.
Mostly, hybrid mutual funds are equity-oriented. The best hybrid funds invest around 50% to 70% in equity & equity related instruments and the remaining in fixed income instruments. This asset allocation helps in churning good returns for its investors.
These funds are suitable for investors seeking good returns at a lesser risk than pure equity funds. For capital appreciation and monthly income one can invest in Hybrid Funds. Monthly dividend schemes of hybrid funds are popular among investors. Best hybrid mutual funds aim for wealth appreciation in the long term. Also, they aim to generate income in the short term through a balanced portfolio. The fund manager allocates the portfolio assets in varying proportions across debt and equity to achieve the fund’s investment objective. To take advantage of the market movements, the fund manager buys and sells securities. Additionally, the choice of these funds primarily depends on the investor’s financial goal (investment objective) and risk preferences.
| Fund Name | 3 Year Returns | 5 Year Returns |
| HDFC Hybrid Debt Fund Direct Plan Growth | 10.2% | 11.3% |
| ICICI Prudential Multi Asset Fund Direct Plan Growth | 18.8% | 21.4% |
| SBI Equity Savings Fund Direct Plan Growth | 10.1% | 11.8% |
| HDFC Hybrid Equity Fund Direct Plan Growth | 11.9% | 16.4% |
| Edelweiss Balanced Advantage Fund Direct Plan Growth | 11.8% | 16.1% |
| ICICI Prudential Regular Savings Fund Direct Plan Growth | 9.7% | 10.6% |
| ICICI Prudential Equity & Debt Fund Direct Plan Growth | 18% | 22.4% |
| HDFC Balanced Advantage Fund Direct Plan Growth | 21.3% | 20.5% |
| HDFC Equity Savings Fund Direct Plan Growth | 10.2% | 12.1 |
| Aditya Birla Sun Life Regular Savings Fund Direct Plan Growth | 8.8% | 10.5% |
| Fund Name | 3 Year Returns | 5 Year Returns |
| HDFC Hybrid Debt Fund Regular Plan Growth | 9.90% | 10.90% |
| ICICI Prudential Multi Asset Fund Regular Plan Growth | 19.50% | 21.10% |
| Edelweiss Balanced Advantage Fund Regular Plan Growth | 10.80% | 14.80% |
| HDFC Hybrid Equity Fund Regular Plan Growth | 12.20% | 15.70% |
| SBI Equity Savings Fund Regular Plan Growth | 10.30% | 11.30% |
| ICICI Prudential Regular Savings Fund Regular Plan Growth | 8.90% | 9.90% |
| HDFC Equity Savings Fund Regular Plan Growth | 9.60% | 11.20% |
| ICICI Prudential Equity & Debt Fund Regular Plan Growth | 18.70% | 21.80% |
| HDFC Balanced Advantage Fund Regular Plan Growth | 20.70% | 19.90% |
| ICICI Prudential Balanced Advantage Fund Regular Plan Growth | 11.90% | 13.10% |
In 2017, SEBI had re-categorized mutual fund schemes to improve uniformity across the mutual funds’ industry. It also enables the investor to evaluate and compare different schemes. Hybrid Schemes is one of the broadly classified schemes. Within hybrid funds, the following are its types.
Hybrid funds are considered a safer option when compared to pure equity funds. Therefore, investors who want to have some equity exposure can invest in them. The equity portion helps in earning significant returns with capital appreciation, while the debt portion shields the investment against market fluctuations. These funds are not entirely risk-free (like government-backed schemes). However, they manage to offer good returns to investors.
Following are the advantages of investing in Hybrid Funds:
The fund house also offers a direct plan and a regular plan for every fund for investors to choose from.
To sum up, portfolio diversification, right asset allocation, and active risk management are the reasons why many investors choose the best hybrid mutual funds.
Since these funds invest in both equities and debt securities, their tax treatment depends on the asset allocation of the funds. All hybrid funds with an exposure of 65% or more to equities are treated as equity funds. And the rest as debt funds.
For mutual fund schemes, the holding period of investments is very important for tax purposes.
Explore: Income Tax on Mutual Funds
Hybrid or Balanced funds are comparatively safer investment options than pure equity funds. However, they are slightly riskier in comparison to pure debt funds. Also, these funds generate higher returns when compared to debt funds. Hence are most popular among conservative investors. Due to the equity exposure in the portfolio, conservative investors can invest in these funds to realize their long term goals.
Therefore, best hybrid funds can be a choice for investment for either first-time or conservative investors or investors seeking diversification.