Types of Hybrid Mutual Funds

A perfect blend of growth & stability with equity and debt for balanced returns.

May 9, 2023

Hybrid mutual funds invest in more than one asset class, i.e. equity, debt and other asset classes depending on the scheme’s investment objective. These funds are categorised based on asset allocation. The following are the types of hybrid mutual funds.


### Conservative Hybrid Fund **Investment Mandate:** Invests up to 10-25% in equity and 75-90% in debt instruments.
**Risk:** Moderately High Risk
**Suitability:** To plan for short term goals
**Duration:** Minimum 3+ years

Balanced Hybrid Fund

Investment Mandate: Invest up to 40-60% in equity and 40-60% in debt instruments.
Risk: High Risk
Suitability: To plan for short to medium term goals
Duration: Minimum 3+ years

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Aggressive Hybrid Fund

Investment Mandate: Invest up to 65-80% in equity and 20-35% in debt instruments.
Risk: Very High Risk
Suitability: To plan for long term goals
Duration: Minimum 5+ years

Dynamic Asset Allocation Fund/Balanced Advantage Fund

Investment Mandate: Invests in both equity and debt instruments dynamically from 0-100%
Risk: High Risk Suitability: To plan for short to medium term goals
Duration: Minimum 3+ years

Multi-Asset Allocation Fund

Investment Mandate: Invests in three different asset classes with a minimum asset allocation of 10% in each asset class.
Risk: Very High Risk
Suitability: To plan for long term goals
Duration: Minimum 5+ years

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Arbitrage Fund

Investment Mandate: Invests at least 65% of its portfolio assets in equity and equity-related instruments following the arbitrage strategy.
Risk: Low Risk
Suitability: To park short term money while getting equity exposure
Duration: Less than 1 year

Equity Savings Fund

Investment Mandate: Invest a minimum of 65% of portfolio assets in equity instruments, 10% in debt instruments and a minimum percentage (as per SID) in derivative instruments.
Risk: Moderately High Risk
Suitability: To plan for short term goals
Duration: 2 to 3 years

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