Hybrid Funds
Balanced portfolios combining equity and debt to optimize returns while managing risk.
How we help
Hybrid funds hold both equity and debt, and some add gold or arbitrage positions. The mix depends on the category, from conservative hybrid funds that are mostly debt to aggressive hybrid funds that are mostly equity.
Balanced advantage and dynamic asset allocation funds change the mix as markets move. That takes one decision off the investor's hands but does not remove market risk.
We explain each category's asset mix and how its tax treatment follows from the share held in equity, so you know what you are buying.
What it covers
- Conservative, balanced advantage and aggressive hybrid funds
- Multi-asset and arbitrage funds
- The asset mix explained before you invest
Offered as an AMFI-registered mutual fund distributor, not a SEBI-registered investment adviser: no advisory fee is charged, trail commission is paid by the asset management company and disclosed, and no return is assured.
Before you decide
Points to check
- 01The share of the fund held in equity
- 02Whether the mix is fixed or changes as markets move
- 03The tax treatment, which follows from the equity share
- 04Your time horizon
Common questions
What people ask us about Hybrid Funds
Do hybrid funds reduce risk?
Holding debt alongside equity can soften falls, but hybrid funds still carry market risk and can lose value.
How are hybrid funds taxed?
Funds that keep at least 65% in Indian equity are taxed like equity funds. Others are taxed according to their mix, under the rules for that category.
What is an arbitrage fund?
A fund that buys shares in the cash market and sells them in the futures market to capture the price difference. It is taxed as an equity fund, and its returns tend to follow short-term interest rates.
More in Mutual Fund & Investment Options
- Equity FundsDesigned for long-term capital appreciation by investing in shares of high-growth companies.Learn more
- Debt FundsFocused on steady, regular income and capital preservation through fixed-income securities.Learn more
- Tax-Saving Funds (ELSS)Equity-linked schemes that help you grow wealth while optimizing your tax liabilities.Learn more
Shree Sai Insurance is the practice of Amit Dhirajlal Waghela, an AMFI-registered mutual fund distributor (ARN-166386), not a SEBI-registered investment adviser. The firm earns commission from asset management companies on the schemes it distributes, does not charge a fee for distribution, and does not guarantee returns. Insurance is offered separately from the mutual fund distribution business. Mutual fund investments are subject to market risks. Read all scheme related documents carefully.