What kind of returns can a hybrid mutual fund scheme deliver? Here’s a list of five hybrid MF schemes that turned Rs 1 lakh invested on April 6, 2023, into at least Rs 1,50,810 on April 8, 2024, beating their respective benchmarks—including the CRISIL Hybrid 35+65 Aggressive, Nifty Mid Small Cap 400 TRI and CRISIL Short-Term Bond indices—by a huge margin, according to data from the Association of Mutual Funds in India (AMFI).
Here’s the list of the top five hybrid mutual fund schemes, belonging to the aggressive and multi-asset allocation categories, as of April 8:
| MF scheme | Category | Benchmark | Riskometer | Return-Direct (%) | |
| Fund | Benchmark | ||||
| JM Aggressive Hybrid Fund | Aggressive | CRISIL Hybrid 35+65 Aggressive Index | Very High | 53.1 | 27.7 |
| Bank of India Mid & Small Cap Equity & Debt Fund | Aggressive | NIFTY Mid Small Cap 400 TRI(70.00), CRISIL Short-Term Bond Index(30.00) | Very High | 50.5 | 45.1 |
| ICICI Prudential Equity & Debt Fund | Aggressive | CRISIL Hybrid 35+65 Aggressive Index | Very High | 42.3 | 27.7 |
| Quant Absolute Fund | Aggressive | CRISIL Hybrid 35+65 Aggressive Index | Very High | 41.1 | 27.7 |
| Quant Multi Asset Fund | Multi Asset Allocation | S&P BSE 200 TRI(65.00), MCX I-COMDEX Composite Index(20.00), CRISIL Short-Term Bond Index(15.00) | Very High | 50.8 | 27.7 |
Source: amfiindia.com
What are hybrid funds?
Hybrid funds offer a middle ground between equity and debt investments, providing a balanced approach to wealth creation and risk management. Also known as balanced funds, hybrid funds are a type of investment fund that combines different asset classes in a single portfolio, typically consisting of a mix of stocks, bonds, and other securities, offering investors diversification and a balanced risk-return profile.
Hybrid MFs aim to provide investors with the benefits of both equity and debt investments. By diversifying across asset classes, these funds help reduce overall portfolio risk while potentially offering higher returns than traditional fixed-income investments.
Are hybrid funds different from equity or debt mutual funds?
Yes, hybrid funds stand out from equity and debt funds in several ways. While equity funds primarily invest in stocks, offering higher returns but also higher risks, debt funds focus on fixed-income securities with lower risks and returns.
Types of hybrid funds
AMFI classifies hybrid funds into the following distinct categories:
- Conservative hybrid funds
- Balanced hybrid funds
- Aggressive hybrid funds
- Dynamic asset allocation hybrid funds
- Balanced advantage hybrid funds
- Arbitrage hybrid funds
- Equity savings hybrid funds
Each type has a unique asset allocation strategy tailored to meet specific investment objectives.
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Meanwhile, inflows into hybrid mutual fund schemes came in at Rs 5,583.6 crore in March as against Rs 18,105.1 crore the previous month, AMFI data showed.
Across the categories, hybrid funds mobilised funds to the tune of Rs 34,220.6 crore in March, according to the monthly AMFI report. Read more on latest AMFI data here
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