5 Benefits of investing in Hybrid Mutual Funds

Published : 24 Apr 2023

Hybrid funds invest the corpus in different asset classes thus giving the benefit of diversification and mitigating risk that is associated with one asset class.

1.  Diversification:

As these funds offer diversified investment, it saves the investor’s time and effort of individually assessing each asset class, and investing in them. It also brings down the overall cost which would have been higher if the investments were made individually in each asset class.

2.  Convenience:

While the equity portion earns a higher return and the debt portion earns lower return and stable returns from debt funds reduces the higher risk associated with equity funds

3. Balance of risk and return:

Equities are subjected to high volatility on a daily basis which may make investors panic and sell out. However, in hybrid funds investors would be have a sense of stability as the debt component will lower the risk of losses and help generate stable income.

4. Lower volatility:

Most hybrid funds have a fixed proportion of stocks and bonds. These funds need very active portfolio management and fund managers like to bet on large caps which are comparatively less risky than midcaps and smallcaps. Hence, expense ratios for such funds is usually on the lower side.

5. Lower expenses: 

Check 5 Hybrid Mutual Funds details here:

AUM: 2,83,896 Cr | NAV: ₹50.3 | Minimum SIP amount: ₹1,000 |  3 Years Returns: 15.0%

AUM: 4,84,872 Cr | NAV: ₹263.2 | Minimum SIP amount: ₹100 |  3 Years Returns: 33.3%

AUM: 2,23,841 Cr | NAV: ₹275.5 | Minimum SIP amount: ₹500 |  3 Years Returns: 28.9%

AUM: 4,18,852 Cr | NAV: ₹90.5 | Minimum SIP amount: ₹100 |  3 Years Returns: 28.4%

AUM: 3,393 Cr | NAV: ₹23.9 | Minimum SIP amount: ₹1,000 |  3 Years Returns: 31.7%