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.
HDFC Hybrid Debt Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 9.5% , a 3 Years return of 12.0% and a 5 Years return of 13.5%
. The fund has an expense ratio of 1.1% and an AUM of ₹
3364 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
2 . ICICI Prudential Multi Asset Fund Direct (G)
ICICI Prudential Multi Asset Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 13.7% , a 3 Years return of 20.0% and a 5 Years return of 27.0%
. The fund has an expense ratio of 0.7% and an AUM of ₹
57485 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
3 . SBI Equity Savings Fund Direct (G)
SBI Equity Savings Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 8.4% , a 3 Years return of 11.5% and a 5 Years return of 14.1%
. The fund has an expense ratio of 0.9% and an AUM of ₹
5443 crores as of 2025-05-12.
It was Launched on 2015-05-27. The minimum lump sum investment is ₹5000.
4 . HDFC Hybrid Equity Fund Direct (G)
HDFC Hybrid Equity Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 9.7% , a 3 Years return of 15.0% and a 5 Years return of 21.3%
. The fund has an expense ratio of 1.1% and an AUM of ₹
23851 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
5 . Edelweiss Balanced Advantage Fund Direct (G)
Edelweiss Balanced Advantage Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 6.7% , a 3 Years return of 13.7% and a 5 Years return of 17.4%
. The fund has an expense ratio of 0.5% and an AUM of ₹
12455 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
6 . ICICI Prudential Regular Savings Fund Direct (G)
ICICI Prudential Regular Savings Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 10.5% , a 3 Years return of 11.1% and a 5 Years return of 11.9%
. The fund has an expense ratio of 1.0% and an AUM of ₹
3166 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
7 . ICICI Prudential Equity & Debt Fund Direct (G)
ICICI Prudential Equity & Debt Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 11.7% , a 3 Years return of 19.9% and a 5 Years return of 27.9%
. The fund has an expense ratio of 1.0% and an AUM of ₹
42340 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
8 . HDFC Balanced Advantage Fund Direct (G)
HDFC Balanced Advantage Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 8.6% , a 3 Years return of 21.3% and a 5 Years return of 27.0%
. The fund has an expense ratio of 0.8% and an AUM of ₹
97461 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
9 . HDFC Equity Savings Fund Direct (G)
HDFC Equity Savings Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 8.0% , a 3 Years return of 11.5% and a 5 Years return of 14.6%
. The fund has an expense ratio of 0.9% and an AUM of ₹
5486 crores as of 2025-05-12.
It was Launched on 2013-01-01. The minimum lump sum investment is ₹5000.
10 . Aditya Birla Sun Life Regular Savings Fund Direct (G)
Aditya Birla Sun Life Regular Savings Fund Direct (G)
is a Hybrid fund
that has delivered a 1 Year return of 11.2% , a 3 Years return of 10.2% and a 5 Years return of 13.5%
. The fund has an expense ratio of 1.0% and an AUM of ₹
1373 crores as of 2025-05-12.
The minimum lump sum investment is ₹5000.
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.
Top 10 Hybrid Mutual Funds with Highest Return in 2025
Direct Plan
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%
Regular Plan
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%
Types of Hybrid Funds
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.
Conservative Hybrid Mutual Funds: It is an open-ended hybrid scheme that predominantly invests in debt instruments. This type of hybrid fund can invest a total of 75%-90% of its assets in debt instruments and 10%-25% of its assets in equity and equity-related instruments. Since this fund predominantly invests in fixed income securities, it suits investors with 2-3 years investment horizon. For the purpose of taxation, they are considered as debt funds.
Balanced Hybrid Mutual Funds: It is an open-ended balanced scheme that invests in both equity and debt securities. It can invest a maximum of 40%-60% in equity and equity-related instruments and 40%-60% in debt instruments. The scheme is ideal for an investment horizon above three years. Their taxation is similar to debt funds.
Aggressive Hybrid Mutual Funds: It is an open-ended equity hybrid fund in India that predominantly invests in equity and equity-related instruments. The scheme can invest 65%-80% of its assets in equities and 20%-35% in debt securities. It is ideal for an investment horizon above three years. For the purpose of taxation, they are considered as equity funds.
Balanced Advantage Funds: It is an open-ended dynamic asset allocation fund. This type of hybrid fund balances its asset allocation between equity and debt based on market situations. This balanced advantage fund books profit when markets rise and invest more during a correction. It is suitable for an investment horizon above three years. Their taxation is similar to equity funds.
Multi-Asset Allocation Funds: It is an open-ended scheme investing in multiple asset classes. Multi-asset allocation funds can invest in a minimum of 10% of its assets in 3 asset classes. This hybrid mutual fund scheme is diversified when compared to other hybrid funds as the investment is spread out to multiple asset classes. It is ideal for investors who want to invest for a three-year horizon.
Arbitrage Funds: It is an open-ended equity hybrid fund in India investing in arbitrage opportunities. Arbitrage funds can invest a minimum of 65% of its assets in equities. This hybrid mutual fund scheme follows arbitrage strategies to maximize returns. It tries to capitalize on inefficient markets. It is suitable for investors who want to invest for a horizon of 1-3 years.
Equity Savings Funds: It is an open-ended scheme investing in equity, debt, and arbitrage opportunities in the market. Equity savings scheme can invest a minimum of 65% of its assets in equities and 10% of its assets in debt securities. The ideal investment horizon for this is 2-3 years. For the purpose of taxation, they are considered as equity funds.
Advantages of Investing in Hybrid Funds
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:
Diversification: Hybrid Funds offer the right mix of diversification through their investment portfolio. The fund’s asset allocation is well balanced between equity and debt instruments.
Suitable for all types of Investors: Hybrid funds suit a new investor who is scared of the equity market, a retiree looking for regular income, or an investor looking for high returns with some cushion. Investors inclined towards equity can invest in Aggressive Hybrid Funds, whereas, risk-averse investors can opt for Conservative Hybrid Funds.
Dual Benefits: Hybrid funds provide dual benefits of long-term growth from equity and stability from debt. A right balance between the equity and debt portion will help the portfolio churn good returns. And, the best hybrid funds offer just that.
Allows lump sums and SIP investments: The fund house allows investors to invest either through lump sum route or SIP route. Lump-sum investments enable the investor to invest the desired amount in one shot. While the Systematic Investment Plan (SIP) enables investors to invest a specified amount regularly. SIP investments help in averaging out the risk and work well in the long term. Investors can calculate their potential SIP returns using the Scripbox SIP calculator. This SIP calculator is available online and free to use. The investors can compute their potential SIP returns accurately.
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.
Taxation
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.
Equity Hybrid Mutual Funds: For equity hybrid funds, if the investor’s holding period is less than one year, then it is a short term investment. And the gains arising out of it are Short Term Capital Gains (STCG). These are taxable at 15% per annum (plus 4% cess). If the investor’s holding period is more than one year, then it is a long term investment. And the gains arising out of it are LongTerm Capital Gains (LTCG). These are taxable at 10% per annum (plus 4% cess), only if the gains are above INR 1 lakh.
Debt Mutual Funds If the investor’s holding period is less than three years, it is a short term investment. And the Short Term Capital Gains (STCG) are taxable as per the income tax slab rate (plus 4% cess). For investments beyond three years, the LongTerm Capital Gains (LTCG) are taxable at 20% with indexation benefit.
From April 1st 2023, debt mutual funds will no longer have the LTCG benefit. Capital gains arising from debt funds will be taxable as per the investor’s income tax slab rate, irrespective of the holding period.
Additionally, there is a Dividend Distribution Tax (DDT) on dividend funds. From April 1st, 2020, dividends are taxable in the hands of investors. Dividends are taxable according to the income tax slab rate. A 10% TDS is cut for dividends above INR 5,000. Additionally, equity mutual funds are subject to securities transaction tax is 0.001% if investors sell their holdings.
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.
The equity presence in the portfolio helps in generating a high return, while the debt exposure acts as a cushion against extreme market volatility. The debt instruments’ exposure ensures stable returns.
Investors who have been investing for a while can also choose to invest in the best hybrid mutual funds. These funds offer diversification to an investor’s portfolio.
The variety of hybrid funds attract diverse investors. The debt oriented schemes are good options for investors looking for monthly income. The arbitrage schemes are low-risk alternatives among the equity-oriented schemes.
Therefore, best hybrid funds can be a choice for investment for either first-time or conservative investors or investors seeking diversification.
How does Scripbox rate funds?
Proprietary system to rate mutual funds
We use a proprietary system to rate mutual funds and based on the outcome of the rating, we classify funds into 4 categories namely "Recommended", "Top Ranked", "Neutral" and "Not Recommended".
Scripbox algorithm recommends 2-4 funds for investment for an investment asset class such as large cap, diversified, liquid etc. When you invest for an objective, the algorithm suggests the appropriate asset class and funds.
Top Ranked
These funds are the top performers within a category of mutual funds considering a combination of criteria. The best amongst these funds are also labelled as Scripbox Recommended.
Neutral
Scripbox recommends other funds, which are more suitable for your investment objectives, within this asset and sub asset class.
Not Recommended
Scripbox algorithm classifies funds as "not recommended" when they perform poorly on a combination of criteria. These funds are usually the poorest performers within a category.
Things we consider to provide ratings for a mutual fund.
Outperformance Consistency
We look at the consistency of the outperformance that the fund has displayed. A fund with high consistency is preferred
Rolling Returns (1 Year Holding Period)
We consider average 1 year return that the fund has delivered over an extended period of time
Rolling Returns (3 Year Holding Period)
We consider average 3 year return that the fund has delivered over an extended period of time
Volatility of Outperformance
We consider how volatile the out-performance over the benchmark has been. A lower volatility is preferred
Downside Protection Measure
We look at how resilient the fund is to market down trends. A fund that has shown a higher resilience is preferred
Upside Participation Measure
We consider how well the fund has been able to participate in upmoves in the market. A fund that participates well is preferred
Fund Size
We look at the size of the fund with respect to other funds in the category. Larger funds are preferred.
How to invest in best mutual funds?
Investing through Scripbox is made easy and paperless. All you need to do is follow the below steps and start investing.
0 1
Choose a plan
Choose a plan to invest to start investing
0 2
Create an Account
Create an account with Scripbox through a paperless process, to invest in best mutual funds.
0 3
Invest online & transfer
Invest via netbanking, UPI or through an SIP (eNACH mandate).
0 4
Track your investments
Track, invest more and withdraw your investments through the Scripbox dashboard
TRUST
18500+Crores
2500+Cities
10000+Customers are millionaires
We thrive on trust.
We match your objectives to the right portfolio. World-class wealth management using science,
data, and technology, leveraged by our experience, and human touch. Get started with your
wealth creation without worry.
With Scripbox, I have my investments at my fingertips. It changed my lifeElroy Joseph NazarethCloud Specialist, Amdocs India Pvt Ltd
Achieve your goals with Scripbox
Get a personalised financial plan based on scientific fund recommendations and transform your future with Scripbox.
Corporate Office : Indiqube @ The Leela Galleria 3rd Floor, No. 23, Old Airport Road,
Bengaluru, Karnataka 560008
Mutual Fund investments are subject to market risks. Please read all scheme related documents
carefully before investing. Past performance is not an indicator of future returns.
1800-102-1265
WhatsApp
Email
Address
