Download the ABCD app
Unlock Financial Tools, Investment Insights, And Expert Guidance – All In One Convenient App !
Visit Our ABCD Page
PLAY STORE
APPSTORE
1800 270 7000
Download
Popular Searches
Trending Plans
Most Visited Products
Health Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
Home LoanFind customised home loan solutions for your unique needs
Balance TransferFind a better interest rate for your existing home loan
Top up Home LoanGet a loan on your existing home loan to meet your needs
Loan Against PropertyTurn your assets into a financial ally
Personal LoanMeet all your dreams and needs with a collateral-free Personal Loan
Flexi LoanMake loan repayment flexible and hassle-free with Flexi Loans
Instant Personal LoanGet quick funds with Aditya Birla Capital Instant Personal Loan
Long Term Personal LoanEnjoy affordable repayments and a flexible tenure with Aditya Birla Capital
Personal Loan EligibilityCheck your Aditya Birla Capital Personal Loan eligibility
Personal Loan Interest RatesEnjoy low personal loan interest rates for affordable repayments
Personal Loan Eligibility Calculator
Are you eligible for a Personal Loan? Find out now!
Calculate Now
Secured Business LoanBoost your business with competitive rates & flexible terms
Line Of CreditGet anytime funds, quick approval, & ongoing support with Line of Credit
Working Capital Demand LoanStrengthen your business cash flow with quick access to funds & flexible repayment options
Supply chain financing Solution - Invoice DiscountingImprove your cash flow & gain quick access to funds by discounting your invoices
Unsecured Business LoanFuel your business with fast approval & flexible terms
Construction FinanceOur solutions with Flexible funding, project requirements to drive construction forward.
Commercial Property PurchaseTurn your property vision into reality with flexible terms and competitive interest rates.
Lease Rental DiscountingSupporting real estate businesses in project completion
Business Loan EMI Calculator
Mauris Porta Arcu Id Tortor Pulvinar Cursus. Mattis, Diam Id.
CALCULATE NOWLoan Against SharesLeverage your investments with Loan Against Shares, while retaining ownership of your assets
Loan Against Mutual FundsUnlock the value of your investments while keeping your assets intact
Loan Against Life insurance PolicyGet loans for all your business needs at attractive rates
IPO financingSeize investment opportunities with IPO Financing to help you invest with ease.
Promoter FundingEmpower your business growth with financial solutions to support expansion & ownership
Project FinanceTurn your ideas into reality with flexible funding to support your vision from start to finish
Structured FinanceUnlock customized financial solutions designed to meet the unique needs of complex business projects
Working Capital Demand LoanKeep your business running smoothly with quick access to funds for day-to-day operations
Term LoanAchieve your business goals with flexible repayment options & competitive rates for long-term growth
Debt FundsDiversify your portfolio and reduce risk with Debt Funds
Equity FundsInvest smartly in Equity Funds to aim for higher returns
Hybrid FundsDiversify your portfolio and reduce your risk with a mix of equity and debt
Retirement FundsGoal-oriented fund with a lock-in period to create a corpus for retirement
Children’s FundsSecure your child’s financial future with solutions-oriented children’s funds
Exchange Traded FundsUnlock a smart, hassle-free way to invest in various assets
Fund Of FundsChoose the smart way to diversify risks and grow investments
Index FundsFollow the benchmark of smart investors to grow your wealth
Mutual Fund Lumpsum Calculator
Calculate wealth creation through lumpsum investment in Mutual Funds
Calculate Now
Equity TradingInvest or trade in equity for attractive returns and long-term capital growth
Margin Trading FacilityGet up to 5X leverage on leading stocks & increase your trading power
BondsGive your portfolio stability with attractive returns
Open A Demat AccountOPEN DEMAT ACCOUNT
Start trading in equities and other securities. Grow your wealth with our Demat account.
Attractive returns
Term InsuranceBring security and peace to life’s unpredictability
Retirement PlansGet a guaranteed regular pension plus lump sum on plan maturity
Savings PlansGet a guaranteed regular pension plus lump sum on plan maturity
ULIP PlansGet the benefits of insurance & wealth creation in one convenient plan
Human Life Value Calculator
Find out how much life insurance you need with our Human Life calculator
Calculate Now
Eye InsuranceProtect your vision with comprehensive eye insurance.
Dental InsuranceProtect your smile with comprehensive dental insurance and coverage plans tailored for you.
Hospicash InsuranceGet financial support with our hospital cash insurance for unexpected medical expenses.
Mental Health & Nutrition InsuranceGet the best mental health insurance online with ABCD Aditya Birla Capital today!
Personal Accident InsuranceSecure your future with our affordable personal accident insurance plans.
Tele OPD ConsultationsAccess convenient teleconsultation and video doctor consultations for your health needs.
Aditya Birla Capital LimitedAditya Birla Capital Limited (“ABCL”) is a listed systemically important non-deposit taking Non-Banking Financial Company (NBFC) and the holding company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 61,600 employees, the businesses of ABCL have a nationwide reach with over 1,690 branches and more than 200,000 agents/channel partners along with several bank partners.
Nationwide Branches
1,690
No. of Employees
61,600+
Agents/Channel Partners
2,00,000+
Aggregate Assets
INR 5.53 Lakh Cr
Consolidated Lending Book
INR 1.65 Lakh CrABCL
Corporate Governance Policies
- Policy for appointment of Statutory Auditors
- ABCL NRC Policy
- Corporate Social Responsibility
- Fair Practices Code
- Internal Guidelines on Corporate Governance
- Familiarization Programme for Independent Directors
- Disclaimers
- Ombudsman
- Privacy Policy
- Trademark Policy
- Vigil Mechanism / Whistle Blower Policy
- Regulatory Disclosure
Financial and Debt-Related Policies
Business and Partnership Policies
- Outsourcing FAQ’s
- Press Releases
- Our Digital Lending Platform Partners
- Our Digital Referral Partners
- ABCL Collection and Recovery Agency List
- ABFL Terminated Collection and Recovery Agency List
- Importance of Following Repayment Schedule
- Scheme of Amalgamation
- SEBI Disclosures
- Interest Rates & Service Charges
- Discontinued Service provider list
- Terms & Conditions
- Fraud Awareness
- Archival Policy
RBI Policy
Life Insurance
Health Insurance
Mutual Fund
Home Finance
Personal Finance
Stocks & Securities
Credit TrackCheck your credit score and get tips on how to improve it
Health TrackHealthy living made easy with ABCD’s Digital Health Evaluation
Portfolio TrackBring your assets and liabilities under one platform
Spend TrackManage your money effectively with Spend Track.
Vehicle TrackCheck Vehicle & Car Insurance Status/Validity Online
ABCD of MoneyView All
Read about MoneyMoney management made easy
Read about TaxUnderstanding direct and indirect taxes
Read about Retirement PlanKnow how to plan retirement well
Read about InsuranceInsurance and it's aspects for laymen
Read about InvestingInvestments and their jargon - simplified
Read about Loans and FinancingKnow all about loans and their management
ABCD of CalculatorsView All
Personal Loan EMI CalculatorEstimate your monthly loan repayments with Personal Loan EMI Calculator
Home Loan Eligibility CalculatorCalculate the expected EMI of your loan for easier repayments
BMI CalculatorIt measure your leanness or obesity basis your height and the weight.
Income Tax CalculatorCalculate the tax payable by you based on your income
SIP CalculatorEstimate the returns you can earn with your SIP investments
SWP CalculatorCalculate the Life Insurance cover you need to secure your family’s future
ConseQuestPLAY NOW
Experience ConseQuest- A game where your decisions drive your future.
What is a Balanced Hybrid Fund?
A Balanced Hybrid Fund is a type of hybrid mutual fund that invests in a balanced mix of equity and debt. The fund offers stable returns and has a moderate risk profile.
Advantages of Balanced Hybrid Funds
Moderate risk
The equity and debt exposure can be changed depending on market movements. This stabilises the portfolio and reduces the risk considerably.
Portfolio diversification
Enjoy a diversified portfolio of equity and debt instruments managed actively to generate the maximum possible returns while minimising risks.
Stable returns
The equity component of the fund has the potential to offer good returns on investments.
Capital Appreciation
The blend of equity for growth and debt for stability offers the potential for capital appreciation while actively managing downside risk through adjustments in asset allocation.
Explore Balanced Hybrid Funds
Most Popular
AUM: 23427(Cr)
Risk: Very High
- MIN. INVESTMENT 500
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹10000
- Get (30 Yrs) ₹24,850*
*Projections/estimations is backtested using historical data.
Most Popular
- AUM: 23427(Cr)
- Risk: High
- MIN. INVESTMENT 1000
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹15000
- Get (30 Yrs) ₹34,850*
*Projections/estimations is backtested using historical data.
Balanced Hybrid Funds Returns Calculator
REGULAR INVESTMENT
SIP
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
START SIPONE TIME INVESTMENT
Lump sum
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
INVEST LUMPSUMTotal Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
ABCD - One app to build a diversified investment portfolio
Invest in mutual funds online with the ABCD app and build your portfolio one click at a time.
-
A choice of different types of mutual fund schemes -
Online investments with a fully integrated digital platform
-
Facility to switch, redeem and invest more from a single platform
PLAY STORE
APP STORE
Scan the QR code to download our Mobile App
Understanding Balanced Hybrid Funds
Table of Contents
What are Balanced Hybrid Funds?What are the features of Balanced Hybrid Funds?What are the different types of hybrid funds?What should be the investment horizon for Balanced Hybrid Funds?What is the tax implication of Balanced Hybrid Funds?What are the payout options?Who should invest in Balanced Hybrid Funds?
What are Balanced Hybrid Funds?
-
Balanced Hybrid Funds are open-ended hybrid mutual fund schemes that invest in equity and debt. The allocation to equity and debt ranges between 40% and 60% and fund managers can allocate the portfolio depending on market movements.
What are the features of Balanced Hybrid Funds?
-
A minimum 40% allocation in equity or debt and the maximum is 60%
-
The fund has a moderate risk profile
-
Fund managers have the flexibility to increase or decrease the equity and debt exposure in tune with market movements
-
Suitable for investors who are looking for stable returns with moderate risks
-
Invest through SIPs or lump sum
What are the different types of hybrid funds?
Aggressive Hybrid Funds
Funds that invest 65% to 80% of their portfolio in equity securities and 20% to 35% in debt
Equity Savings Funds
Funds that invest in equity, debt and arbitrage opportunities. A minimum of 65% of the portfolio is invested in equity and 10% in debt
Conservative Hybrid Fund
Hybrid funds which invest 75% to 90% of the portfolio in debt and the remainder in equity
Multi-Asset Allocator Fund
Funds that invest at least 10% of the portfolio in three different asset classes
Arbitrage Funds
Funds that invest in arbitrage opportunities. At least 65% of the fund is invested in equity
What should be the investment horizon for Balanced Hybrid Funds?
-
Balanced Hybrid Funds have the flexibility to be equity-oriented or debt-oriented
-
As such, they have a moderate risk profile
-
You can invest for a medium to long-term duration for attractive returns
What is the tax implication of Balanced Hybrid Funds?
-
Balanced Hybrid Funds do not have a minimum of 65% allocation in equity
-
As such, they attract debt taxation on the capital gains earned
-
The returns earned are taxed at your income tax slab rates
-
Dividends earned, if any, are taxed at your income tax slab rate
What are the payout options?
-
Dividend option
Earn dividends on your investment at regular intervals
-
Growth option
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
Who should invest in Balanced Hybrid Funds?
-
New equity investors
You can protect against high volatility risks with moderate exposure to equity, which can change if the markets turn volatile
-
Investors with a moderate risk profile
Since the fund can switch between a high equity or debt exposure, they have a moderate risk profile and suit investors with the same risk profile
-
Investors looking for good returns
If you want equity-oriented returns with lower risks, Balanced Hybrid Funds can be a good choice.
Portfolio Track
Consolidate with Portfolio Track
-
Consolidate assets, liabilities
-
Track portfolio at fingertips
Credit Track
Easily check credit score with Credit Track
-
Decide wisely with credit stimulator
-
Get personalised loan offers
FAQs On Balanced Hybrid Funds
As its name suggests, Balanced Hybrid Funds are a type of funds which diversify the portfolio of the investor by investing in varied classes of assets, consisting of both equity such as stock and debt such as bonds. This hybrid fund aims to provide both stability and capital appreciation through its debt and equity allocation respectively.
Balanced Hybrid Funds face market risk as the performance of equity instruments is subject to fluctuations in the market and interest rate risk as debt investments are influenced by changes in the interest rates. Other risks may include credit risk, volatility risk, and concentration risk.
While investing in balanced funds, consider your risk appetite, investment horizon, and expense ratio and asset allocation. It is necessary to analyse your financial goals according to your investment horizon and risk appetite. Then invest in balance funds which align your investment horizon and risk appetite with your financial goals.
Balance hybrid funds invest 40-60% of the funds in equity and the rest in debt. It offers a balanced approach to investments and reaps both capital appreciation and returns through its diversified portfolio. You can consider investing in Balanced Hybrid Funds if you are looking for growth and capital appreciation as well as stability and capital protection without taking too much risk as in pure equity funds.
Balanced Hybrid Funds are safer the other equity mutual funds . Its allocation to debt instruments helps to neutralise the market volatility of the portfolio of the investor making it a safe avenue with comparatively lower risk than equity hybrid funds.
Balanced Hybrid Funds invest 40-60% of the investments in equity instruments whereas conservative hybrid funds invest only 10-25% of the investments in equity and the rest in debt. Conservative hybrid funds are low-risk funds with moderate returns and Balanced Hybrid Funds are comparatively riskier with the potential for higher returns than conservative hybrid funds.
Some Balanced Hybrid Funds charge an exit load when these funds are redeemed within a specified lock-in period.
Some Balanced Hybrid Funds allow regular monthly investments through SIP. Check the terms of investment of the Balanced Hybrid Funds before investing.
You can redeem the Balanced Hybrid Funds online through the website of the fund house or by visiting their branch office.
You can withdraw or redeem the balance of hybrid funds any time you want. However, check the exit load charges applicable for early redemption within a prescribed period which is generally 3 years.
The taxation of balance hybrid funds depends on their allocations between equity and debt and their holding period. For equity-oriented balance funds which have higher exposure to equity, short-term capital gains which has less than a year holding period are taxed at 15% and long-term capital gains having more than one year holding period are taxed at 10% with an exemption of up to Rs. 1 lakhs. Alternatively, for debt-oriented balance funds which have higher exposure to debt, short-term capital gains are taxed at the applicable slab rate of the investor and long-term capital gains are taxed at 20% with indexation benefits.
Balanced Hybrid Funds provide moderate returns and capital protection with lower volatility as compared to pure equity mutual funds.
The performance of Balanced Hybrid Funds is influenced by several factors such as interest rate changes, market fluctuations, fund managers' investment strategies, asset allocation and credit quality of the debt instruments.
You can track the NAV of the balance hybrid on the website of the fund house. Alternatively, it is generally updated on the financial platforms for investors to keep track of it.
The expense ratio is the fees charged by the fund managers to manage the fund's assets. It is expressed as a percentage of the total assets under the management. The expense ratio varies among different hybrid mutual funds. It is generally arranged 1 to 2%. Check the expense ratio of the balance hybrid funds you are interested in before investing.
The primary difference between Balanced Hybrid Funds and balanced advantage funds is that the former maintains a fixed allocation of 60% and 40% in the equity and debt instruments whereas there is no fixed allocation as such in balanced advantage funds and are generally decided by the fund managers based on the market conditions.
The disadvantages of balanced funds are that they underperform pure equity funds, particularly during the bull market as a significant part is allocated to debt. It offers moderate returns and is exposed to market risks.
The choice between equity or balanced funds depends on individual investment goals and risk appetite. Equity mutual funds offer higher returns but at higher risk and volatility whereas balanced funds offer a balance between stability and growth with moderate returns and lower risk.
Types of Hybrid Mutual Funds
Equity-Oriented Fund
Other asset class funds
Debt Funds
Invest in debt securities for low risks and stable returns.
Know More
Equity Fund
Give your savings the growth they deserve. Invest in Equity Funds and unlock the potential of long-term growth
Know More
ETF Funds
Invest in funds listed and traded on the stock exchange
Fund of Funds
Mutual funds that invest in other mutual funds both in India and globally
Index Fund
Passively-managed mutual funds tracking a particular index
Know More