{"id":10730,"date":"2025-06-06T11:04:36","date_gmt":"2025-06-06T11:04:36","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=10730"},"modified":"2026-08-06T12:38:13","modified_gmt":"2026-08-06T12:38:13","slug":"what-are-hybrid-mutual-funds","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/what-are-hybrid-mutual-funds\/","title":{"rendered":"What are Hybrid Mutual Funds?\u00a0"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#what-are-hybrid-funds\">What are Hybrid Mutual Funds?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#types-of-hybrid-mutual-funds\">Types of Hybrid Mutual Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#conservative-hybrid-funds\">Conservative Hybrid Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#balanced-hybrid-funds\">Balanced Hybrid Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#arbitrage-funds\">Arbitrage Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#aggressive-hybrid-funds\">Aggressive Hybrid Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#dynamic-asset-allocation-funds\">Dynamic Asset Allocation Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#equity-oriented-hybrid-funds\">Equity-oriented Hybrid Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#list-of-top-hybrid-mutual-funds\">List of Top Hybrid Mutual Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#how-does-a-hybrid-mutual-fund-work\">How Does a Hybrid Mutual Fund Work?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#features-of-hybrid-funds\">Features of Hybrid Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#advantages-of-investing-in-hybrid-mutual-funds\">Advantages of Investing in Hybrid Mutual Funds<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#balanced-risk-and-return\">Balanced Risk and Return<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#suitable-for-first-time-investors\">Suitable for First-time Investors<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#asset-allocation\">Asset Allocation<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#reduced-volatility\">Reduced Volatility<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#stable-returns\">Stable Returns<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#how-to-invest-in-hybrid-mutual-funds\">How to Invest in Hybrid Mutual Funds?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#hybrid-funds-taxation-rules\">Hybrid Mutual Funds Taxation Rules<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#wrap-up\">Wrap Up<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>\ud83d\udca1 Quick Answer<\/strong><br>A hybrid mutual fund invests in a mix of equity, debt and sometimes gold to balance growth with stability. The Securities and Exchange Board of India (SEBI) classifies them into categories such as conservative, balanced, aggressive, dynamic asset allocation and arbitrage funds, each with a different equity-to-debt ratio and risk level.<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Investors are consistently looking for investment options that will offer a balance between risk and return. But some people find it hard to choose equity and debt instruments; <strong>hybrid mutual funds <\/strong>are the best solution for them. These funds will offer a diversified portfolio by combining both equity and debt components.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In this blog, we\u2019ll explain <strong>what is hybrid mutual fund, <\/strong>its types, taxation, benefits and how to get started in detail. Let\u2019s dive into the blog! &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-020e4bda7000251788c8880431ca98fd\" id=\"what-are-hybrid-funds\" style=\"color:#023368\">What are Hybrid Mutual Funds?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Hybrid mutual fund <\/strong>is a type of <a href=\"https:\/\/navia.co.in\/blog\/category\/investments\/\">investment<\/a> scheme that allows the investor to invest in a mix of equity (stock), debt (bonds), and other assets like gold. The major aim of this fund is to create a <strong>balanced portfolio <\/strong>with growth along with the stability of debt instruments. Investors who are looking for <strong>moderate risk with reasonable returns <\/strong>are suitable for investing in these funds. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">In a simple word, <strong>hybrid mutual funds&#8217; meaning <\/strong>lies in their ability to adapt to various market conditions by managing asset allocations. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-89ffd83b831becfc535123ec420a6e1e\" id=\"types-of-hybrid-mutual-funds\" style=\"color:#023368\">Types of Hybrid Mutual Funds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <a href=\"https:\/\/navia.co.in\/blog\/sebis-latest-guidelines-on-fo-trading\/\">Securities and Exchange Board of India<\/a> (SEBI) has classified hybrid <a href=\"https:\/\/navia.co.in\/blog\/category\/mutual-funds\/\">mutual funds<\/a> into various categories they are listed below;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-8627e652f32bec35fc329253f4634d8c\" id=\"conservative-hybrid-funds\" style=\"color:#ec4d37\">Conservative Hybrid Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Invest around 75-90% in debt and remain in equities. And it is suitable for low-risk investors.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-fb8ea3c4f4ce7e00f47d92b9011e708c\" id=\"balanced-hybrid-funds\" style=\"color:#ec4d37\">Balanced Hybrid Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Maintain 40% to 60% in both Equity and Debt, aim is for balanced growth and income.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-8ccf041a4d81dc5dec43e89ab01cc9d2\" id=\"arbitrage-funds\" style=\"color:#ec4d37\">Arbitrage Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">These funds utilize price differences of different markets, and it quickly buys in low and sells in high for low-risk returns. Read our full guide to <a href=\"https:\/\/navia.co.in\/blog\/what-are-arbitrage-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">arbitrage funds<\/a> for how the cash and futures legs work.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-0ddca6a83179a50d473df38dec09ba04\" id=\"aggressive-hybrid-funds\" style=\"color:#ec4d37\">Aggressive Hybrid Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Invest 65-80% in equities and the rest in debt, and it is suitable for investors with a high-risk appetite.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-7b300fb89154b9704c409e49c639ea01\" id=\"dynamic-asset-allocation-funds\" style=\"color:#ec4d37\">Dynamic Asset Allocation Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Also known as balanced advantage of funds, this is dynamically based on market conditions, and suitable for investors who want to automate asset allocation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-6b0fc8882b92e61f799c3f3a0f8357fc\" id=\"equity-oriented-hybrid-funds\" style=\"color:#ec4d37\">Equity-oriented Hybrid Funds&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Invest 65% in equity and the remaining 35% is in debt.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background has-link-color wp-element-button\" href=\"https:\/\/navia.co.in\/app.html\" style=\"background-color:#ec4d37\"><strong>Get Navia APP<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-b61f2873a10a1ca35d48023b3af8b4ed\" id=\"list-of-top-hybrid-mutual-funds\" style=\"color:#023368\">List of Top Hybrid Mutual Funds&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Here you can see the <strong>10 best hybrid mutual funds<\/strong> in India;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">*Source: <a href=\"https:\/\/www.etmoney.com\/mutual-funds\/hybrid\">etmoney<\/a>&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Scheme Name<\/strong>&nbsp;<\/td><td><strong>Expense Ratio<\/strong>&nbsp;<\/td><td><strong>3Y Return<\/strong>&nbsp;<\/td><\/tr><tr><td>ICICI Prudential Equity &amp; Debt Fund&nbsp;<\/td><td>0.97%&nbsp;<\/td><td>21.14% p.a.&nbsp;<\/td><\/tr><tr><td>JM Aggressive Hybrid Fund&nbsp;<\/td><td>0.56%&nbsp;<\/td><td>24.74% p.a.&nbsp;<\/td><\/tr><tr><td>HDFC Balanced Advantage Fund&nbsp;<\/td><td>0.77%&nbsp;<\/td><td>22.51% p.a.&nbsp;<\/td><\/tr><tr><td>Edelweiss Aggressive Hybrid Fund&nbsp;<\/td><td>0.39%&nbsp;<\/td><td>21.36% p.a.&nbsp;<\/td><\/tr><tr><td>Bank of India Mid &amp; Small Cap Equity &amp; Debt Fund&nbsp;<\/td><td>0.87%&nbsp;<\/td><td>23.95% p.a.&nbsp;<\/td><\/tr><tr><td>Quant Multi Asset Fund&nbsp;<\/td><td>0.6%&nbsp;<\/td><td>23.69% p.a.&nbsp;<\/td><\/tr><tr><td>ICICI Prudential Retirement Fund &#8211; Hybrid Aggressive Plan&nbsp;<\/td><td>0.81%&nbsp;<\/td><td>22.86% p.a.&nbsp;<\/td><\/tr><tr><td>Nippon India Multi Asset Active FoF&nbsp;<\/td><td>0.24%&nbsp;<\/td><td>22.59% p.a.&nbsp;<\/td><\/tr><tr><td>UTI Multi Asset Allocation Fund&nbsp;<\/td><td>0.6%&nbsp;<\/td><td>21.72% p.a.&nbsp;<\/td><\/tr><tr><td>Kotak Multi Asset Allocator FoF &#8211; Dynamic&nbsp;<\/td><td>0.31%&nbsp;<\/td><td>21.57% p.a.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Note: Always check recent data and past performance before investing. Comparing schemes is easier once you know the <a href=\"https:\/\/navia.co.in\/blog\/direct-vs-regular-mutual-fund-which-is-better\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">difference between direct and regular plans<\/a> and how to read <a href=\"https:\/\/navia.co.in\/blog\/what-is-xirr-in-mutual-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">XIRR in mutual funds<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-2977809ff990bc907e0a456dafa73470\" id=\"how-does-a-hybrid-mutual-fund-work\" style=\"color:#023368\">How Does a Hybrid Mutual Fund Work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">A <strong>hybrid mutual fund <\/strong>works by pooling money from various investors and allocates it into equity and debt instruments based on the fund\u2019s objective. &nbsp;<\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">In rising market, equity portion contributes to higher returns<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">During market declines, the debt part helps reduce losses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">And some hybrid funds use both arbitrage and derivatives to <a href=\"https:\/\/navia.co.in\/blog\/risk-management-strategies-for-day-traders\/\" data-type=\"post\" data-id=\"2929\">manage risks<\/a> and returns. So, the fund manager should balance the equity and debt components to optimize returns based on the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8d4326bbc432184b793618665e2b363d\" id=\"features-of-hybrid-funds\" style=\"color:#023368\">Features of Hybrid Funds&nbsp;<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Features<\/strong>&nbsp;<\/td><td><strong>Description<\/strong>&nbsp;<\/td><\/tr><tr><td>Higher Returns&nbsp;<\/td><td>Invest in both equity and debt, so it is striving to better fund returns&nbsp;<\/td><\/tr><tr><td>Lower Risk&nbsp;<\/td><td>The combining of high-return nature of equity and lower-risk nature of debt will balance risk&nbsp;<\/td><\/tr><tr><td>Diversification&nbsp;<\/td><td>The exposure to multiple asset classes in a single fund&nbsp;<\/td><\/tr><tr><td>Income Generation&nbsp;<\/td><td>Income through interest from bonds and dividends from equities, so it is ideal for investors who seeking steady cash flow&nbsp;<\/td><\/tr><tr><td>Long Term Performance&nbsp;<\/td><td>Suitable for people who have long-term investment goals, minimum lock-in period of 3-5 years. &nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/open.navia.co.in\/index-navia.php?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=hybrid_mutual_funds_CTA\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png\" alt=\"Open a free Navia demat account to invest in hybrid mutual funds\" class=\"wp-image-9412\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/03\/OPEN-DEMAT-ACC-768x112.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-d54f432083c07a6749e2042a1ae82406\" id=\"advantages-of-investing-in-hybrid-mutual-funds\" style=\"color:#023368\">Advantages of Investing in Hybrid Mutual Funds&nbsp;<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-3e1a28817fd3f48862a85d6bd8f394c1\" id=\"balanced-risk-and-return\" style=\"color:#ec4d37\">Balanced Risk and Return&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">By investing in both equity and debt, hybrid funds provide stability along with growth potential.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-97983eada792a75fbe8e40af005668f0\" id=\"suitable-for-first-time-investors\" style=\"color:#ec4d37\">Suitable for First-time Investors&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Hybrid funds offer a good starting point for new investors who are unsure about market volatility. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-d017f56aa621686966fede25ed93b4be\" id=\"asset-allocation\" style=\"color:#ec4d37\">Asset Allocation&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Investors no need to manage equity and debt allocation manually; fund managers will handle it accordingly. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-8ad303d37d471b7c70d9b55fa43b2507\" id=\"reduced-volatility\" style=\"color:#ec4d37\">Reduced Volatility&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The combining of equity and debt hybrid funds will offer lower volatility than equity funds. &nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-3fc45f9f351b352c0786ddc868c974d3\" id=\"stable-returns\" style=\"color:#ec4d37\">Stable Returns&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Hybrid fund&#8217;s goal is to offer stable returns by balancing growth potential equities with income generation debt. If steady income is your main aim, also look at <a href=\"https:\/\/navia.co.in\/blog\/what-is-a-fixed-income-mutual-fund\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">fixed income mutual funds<\/a>. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-51d4e73d25a8f3c48f50d1f0d0862436\" id=\"how-to-invest-in-hybrid-mutual-funds\" style=\"color:#023368\">How to Invest in Hybrid Mutual Funds?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">You invest in hybrid mutual funds by defining your goal, opening a demat or mutual fund account, picking the hybrid category that matches your risk appetite and choosing lump sum or SIP. Investing in hybrid mutual funds is very simple, the step-by-step process is given below;&nbsp;<\/p>\n\n\n\n<ol style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 1<\/strong>: Define your goals like Identifying your financial targets.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 2<\/strong>: Open a demat or mutual fund account through platforms like Navia Markets.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 3<\/strong>: Select the hybrid fund type that is based on your goal and risk appetite.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 4<\/strong>: Choose a mode like Lump sum or SIP (Systematic Investment Plan)<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 5<\/strong>: After the selection of the mode, you can invest in hybrid funds.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Step 6<\/strong>: Track performance and periodically adjust it.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-8be0de3491bc766f3abdb9aeab475c96\" id=\"hybrid-funds-taxation-rules\" style=\"color:#023368\">Hybrid Mutual Funds Taxation Rules<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The taxation rules hybrid mutual funds based on their equity exposure. For example, if a hybrid fund holds 65% in equities, it is taxed like an equity fund, 15% on short-term gains (within 1 year), and 10% on long-term gains (above 1 lakh after 1 year). If the equity portion is less than 65%, it is taxed according to the investor\u2019s income tax slab. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Note: Always consult a tax advisor for updated rules applicable to your financial situation.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-a591daab385433541ebb77aadccb65d3\" id=\"wrap-up\" style=\"color:#023368\">Wrap Up&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>What are hybrid mutual funds? <\/strong>The answer is simple; it is a balanced investment instrument that offers both equity and debt markets. We know that different fund types will cater to various risk levels, but hybrid funds are a conservative saver for those seeking growth. If you want to diversify your portfolio or are new to investing, <strong>hybrid mutual funds <\/strong>are a strong contender. And also, you can get benefits like risk balance, asset allocation and stable returns. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">So, are you ready for a change? Create an account in <strong><a href=\"https:\/\/navia.co.in\/\">Navia<\/a><\/strong> and explore the complete benefits now!&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-70dfdd187a2b0b3b6d9a2a3606b9da84\" id=\"key-takeaways\" style=\"color:#ec4d37\">Key Takeaways<\/h3>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Hybrid mutual funds hold a mix of equity, debt and sometimes gold in a single scheme.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">SEBI-classified categories range from conservative (75-90% debt) to aggressive (65-80% equity).<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">The debt portion cushions losses in falling markets while equity drives returns in rising ones.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Taxation follows equity exposure: 65% or more in equities is taxed like an equity fund, below that at your income tax slab.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">They suit first-time and moderate-risk investors who want asset allocation handled by the fund manager.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>Do You Find This Interesting?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\">We\u2019d Love to Hear from you-<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png\" alt=\"feedback yes or no button\" class=\"wp-image-8901\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/02\/Yes-No-Button-1-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9a07b674a5b87db9730c3cf59dbbb76b\" id=\"frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is a hybrid mutual fund?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">A hybrid mutual fund is a type of investment that puts your money into both equity (stocks) and debt (bonds) to balance risk and returns.&nbsp;<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Are hybrid funds and arbitrage funds same?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">No, Hybrid funds invest in both equity and debt for long-term growth and stability, while <a href=\"https:\/\/navia.co.in\/blog\/what-are-arbitrage-funds\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=mutual_funds\">arbitrage funds<\/a> earn profits by exploiting price differences between cash and futures markets.&nbsp;<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Who can invest in hybrid mutual funds?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Anyone, beginners, moderate-risk investors, or those looking for a balanced investment.&nbsp;<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is an example of a hybrid fund?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">An example of hybrid mutual fund is ICICI Prudential Equity and Debt Fund.&nbsp;<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is the return rate of a hybrid fund?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">The Return rate of a hybrid mutual fund is based on market performance.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Are hybrid mutual funds good for investment?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes, they are suitable for investors who prefer moderate risk and diversified exposure.&nbsp;<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Can anyone invest in hybrid funds?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Yes, hybrid funds are open to all investors.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong> Full disclaimer: https:\/\/bit.ly\/naviadisclaimer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\ud83d\udca1 Quick AnswerA hybrid mutual fund invests in a mix of equity, debt and sometimes gold to balance growth with stability. The Securities and Exchange Board of India (SEBI) classifies them into categories such as conservative, balanced, aggressive, dynamic asset allocation and arbitrage funds, each with a different equity-to-debt ratio and risk level. Investors are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[209],"tags":[560,387,561,23,8],"class_list":["post-10730","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mutual-funds","tag-arbitrage-funds","tag-asset-allocation-funds","tag-hybrid-mutual-funds","tag-mutual-funds","tag-sebi"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/06\/Hybrid-mutual-funds.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/06\/Hybrid-mutual-funds.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=10730"}],"version-history":[{"count":13,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10730\/revisions"}],"predecessor-version":[{"id":18942,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/10730\/revisions\/18942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/10739"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=10730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=10730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=10730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}