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Hybrid Funds

Elevate your wealth journey. Balance risk & returns for optimal investment

Diversified portfolio of equity and debt
Mixture of safety, income and modest capital appreciation
Varying equity and debt allocation as per risk taking appetite

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What are
hybrid mutual funds?

Hybrid mutual funds blend equities and debt instruments in their portfolio to achieve a balance between growth and stability. They are suitable for investors looking to invest for medium term and

Why invest in hybrid mutual funds?

Asset-class diversification

Invest in both equity and debt through a single fund for wealth creation and capital protection.

Moderate risk profile

Since the fund invests in debt too, the equity volatility risk is offset by stable debt returns to bring down the risk.

Caters to every investor

Choose from equity-oriented to debt-oriented hybrid funds based on your risk profile as the funds are suitable for all investors.

Long term investment

With a long-term investment perspective, you can grow your wealth with the growth in equity component of the fund .

Types of Hybrid Funds

Understanding Hybrid Funds

What are hybrid funds?What are the important aspects of hybrid funds How hybrid mutual funds work What are the features of hybrid mutual funds?How hybrid funds meet different investment strategies?What is the tax implication of hybrid mutual funds?

What are hybrid funds?

Hybrid funds are diversified portfolios that combine both stocks (which can grow your money) and debt instruments (which provide stability). This mix gives you exposure to different asset classes for effective returns at reduced risks.

What are the important aspects of hybrid funds?

Moderate risk profile

By having debt exposure, hybrid funds bring down the risk profile of the portfolio making it less risky than pure equity funds.
Fit for different goals

Hybrid funds come in different types. Some are equity-oriented, some debt-oriented, while others offer a dynamic allocation. You can chooses hybrid funds based on your risk tolerance.
Investment avenue

You can invest in hybrid funds for medium to long-term investment horizon depending on your financial goals.

How hybrid mutual funds work?

Hybrid mutual funds are a type of investment fund that invests in different asset classes such as Equity and Debt providing a diversified investment option.
The primary objective of a hybrid fund is to generate capital appreciation while diversifying risk.
Choose a fund based on your investment strategy and grow wealth over the investment duration.

How to invest in debt mutual funds?

Portfolio allocation between equity and debt
Moderate risk-return profile
Growth potential in both medium and long-term investment
Regular returns in the dividend option
A combination of stability and growth

How hybrid funds meet different investment strategies?

Looking to create long-term wealth?

Choose equity-oriented hybrid funds which invest primarily in equity
Want to grow wealth in the next 3-5 years?

Choose balanced funds with 60:40 allocation in equity and debt

Want stable returns with minimal risks?

Choose debt-oriented hybrid funds with limited equity exposure
Want to invest in different asset classes?

Invest in multi-asset allocation funds

What is the tax implication of hybrid mutual funds?

Equity-oriented funds

• Hybrid funds with more than 65% equity exposure are taxed as equity funds,
• Short-term capital gains are taxed at 15%.
• Long-term capital gains are tax-free up to Rs.1 lakh. Excess returns are taxed at 10%
Dividend Income Taxation

• The dividend is added to your taxable income and taxed at your slab rate
Debt-oriented funds:

• Returns earned are taxed at your income tax slab rate.

LI Retirement Plan

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Bonds

Guaranteed returns, liquid trading

Diverse bond types
Stable portfolio returns

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FAQs On Hybrid Funds

A hybrid mutual fund is one where the fund allocates investments across diverse assets, including equities, debt securities, gold instruments, etc. In simpler terms, an individual investing in a hybrid fund invests in the combination of its underlying assets.

Balanced fund is a type of Hybrid fund. Balanced fund invest 40-60% in equity and 60-40% in debt.

Hybrid mutual funds are ideal for first-time investors who prefer not to manage their asset allocations. However, there is a degree of volatility due to exposure to equity funds.

Conservative hybrid funds primarily invest in Debt instrument. They invest in 75% - 90% of their asset in Debt instrument and only 10% -25% in Equity.

Aggressive hybrid funds primarily invest the in pure equity funds. They have a higher equity exposure, with 65% to 80% in equities and 20% to 35% in debt instruments.