Which are the best performing hybrid funds?
High-risk capacity individuals can invest in equity-oriented schemes, moderate risk capacity individuals can invest in a combination of equity as well as debt; proportion might differ from person to person. And lastly, low-risk capacity individuals can invest in debt-oriented schemes.
Currently, the majority of the population is aware of the returns hybrid funds are delivering due to which net inflow is increasing in hybrid funds. As per the Association of Mutual Funds of India (AMFI), net inflow surged up from Rs 1,259 crore as of January 2020 to Rs 3,587 crore as of September 2021. Besides, as per SEBI these hybrid schemes are divided into 6 sub-categories and presently there are 138 hybrid schemes and as per AMFI.
Let’s look at subcategories of hybrid schemes:
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Sub-categories of hybrid schemes
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Explanation
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Best performing funds within the category based on 1 year return (Direct Plan)
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1. Conservative Hybrid Fund
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This is an open-ended scheme chiefly investing in debt instruments. This scheme is suitable for conservative investors. Investment of 10% to 25% in equity and equity-related instrument and investment and 75%-90% of total assets towards debt instruments.
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Aditya Birla Sun Life Regular Savings Fund – 24.28%
UTI Regular Savings Fund – 23.95%
HDFC Hybrid Debt Fund – 23.92%
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2.
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Balanced Hybrid
Fund
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This is an open-ended scheme predominantly investing in equity as well as debt instruments. Investment of 40% to 60% of total assets towards equity and equity-related instruments. Likewise, 40% to 60% of total assets towards debt instruments.
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Kotak Asset Allocator – 40.80%
IDFC Asset Allocation Moderate – 25.55%
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Aggressive Hybrid Fund
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This scheme is an open-ended scheme chiefly investing in equity and equity-related instruments. Investment in equity and equity-related instruments of 65% to 80% of total assets and 20% to 35% investment of total assets towards debt instruments.
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ICICI Prudential Equity & Debt Fund – 79.31%
BOI AXA Mid & Small Cap Equity & Debt Fund – 74.44%
UTI Hybrid Equity Fund – 56.63%
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3. Dynamic Asset Allocation or Balanced Advantage
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This is an open-ended scheme investing in equity/debt that is managed dynamically.
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HDFC Balanced Advantage Fund – 62.26%
Edelweiss Balanced Advantage Fund – 37.84%
Nippon India Balanced Advantage Fund – 33.23%
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4. Multi-Asset Allocation
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This scheme is an open-ended scheme in at least three asset classes with a minimum asset allocation of at least 10% each in all three asset classes.
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ICICI Prudential Multi-Asset Fund – 66.35%
Quant Multi-Asset Fund – 66.10%
Axis Triple Advantage Fund – 45.78%
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5. Arbitrage Fund
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This scheme is an open-ended scheme investing in arbitrage opportunities. Minimum investment of 65% of total assets should be towards equity and equity-related instruments.
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Tata Arbitrage Fund – 4.69%
Kotak Equity Arbitrage Fund – 4.57%
Aditya Birla Sun Life Arbitrage Fund – 4.56%
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6. Equity Savings
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This is an open-ended scheme investing in equity, arbitrage and debt. Minimum investment in equity and equity-related instruments should be 65% of total assets and at least 10% of total assets towards debt instruments. Minimum hedged & unhedged to be
stated in the SID.
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Mahindra Manulife Equity Savings Dhan Sanchay Yojana – 32.43%
HDFC Equity Savings Fund – 31.73%
Principal Equity Savings Fund – 31.40%
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