It has been said by many financial experts that hybrid mutual funds are one of the best investments in India. Hybrid mutual funds are a combination of equity and debt, which provide an investor with a potential to earn higher returns which are relatively less risky compared to equity investments. This type of investment gives an investor the opportunity to diversify their portfolio and realize the benefits of both equity and debt.
Hybrid funds provide higher returns than other traditional investments such as fixed deposits, while also offering tax advantages. Income earned from equity investments is subject to a 15% long-term capital gain tax, while income earned from debt is subject to a long-term capital gain tax of 20%. The hybrid fund mix helps to minimize tax liability on capital gains.
In addition, hybrid mutual funds offer portfolio diversification which is beneficial for investors to manage risk. Investing in equity and debt securities provides the ability to hedge against downturns in the markets. As equity investments generate higher returns, they assume a larger percentage of the portfolio in upward markets and a smaller one in downward markets. This helps to minimize risk and reduce losses in a down market.
Investors should also consider the various types of hybrid funds, such as equity-oriented hybrid funds, debt-oriented hybrid funds, liquid funds, and tax saver funds, when looking to maximize returns. Equity-oriented hybrid funds are more aggressive and offer higher potential returns, whereas debt-oriented hybrid funds are more conservative and offer lower risk. Liquid funds are low-risk and offer higher returns than traditional savings accounts, while tax saver funds provide an additional avenue to reap tax benefits. It is best to consult an advisor before starting online mutual fund investments as they would be able to guide you which hybrid funds would suit your risk appetite and returns expectation within the desired time horizon.
Overall, hybrid mutual funds offer investors flexible investment options, which combine the benefits of equity and debt. Although these funds are potentially riskier than conservative investments, their advantages make them a viable option for those seeking to get maximum returns. Hybrid funds offer diversification, tax advantages and the potential for greater returns, and thus proves to be the best investment in India.
Best Hybrid Funds for Online Mutual Fund Investments in 2023 – EquitySeeds Consultants
3 Best Aggressive Hybrid Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| ICICI Pru Equity & Debt Fund – (G) | 18,586.87 | 1.80% | 15.93% | 18.49% | 12.68% | 17.04% |
| Tata Hybrid Equity Fund – Regular (G) | 3,027.41 | 2.00% | 6.11% | 12.29% | 7.90% | 16.78% |
| Aditya Birla SL Equity Hybrid 95 Fund (G) | 7,525.08 | 1.88% | 0.96% | 11.46% | 6.85% | 16.54% |
3 Best Arbitrage Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| Kotak Equity Arbitrage Fund (G) | 25,788.79 | 1.02% | 3.54% | 4.23% | 5.08% | 6.84% |
| Nippon India Arbitrage Fund (G) | 10,809.24 | 1.06% | 3.31% | 4.10% | 5.07% | 6.84% |
| ICICI Pru Equity – Arbitrage Fund (G) | 13,399.83 | 0.98% | 3.22% | 4.05% | 4.90% | 6.81% |
3 Best Conservative Hybrid Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| HDFC Hybrid Debt Fund (G) | 2,652.94 | 1.85% | 4.47% | 9.00% | 6.50% | 10.07% |
| ICICI Pru Regular Savings Fund (G) | 3,240.32 | 1.74% | 6.45% | 8.96% | 7.77% | 9.82% |
| Aditya Birla SL Regular Savings Fund (G) | 1,658.42 | 1.88% | 6.18% | 9.21% | 5.88% | 9.39% |
3 Best Balanced Advantage Hybrid Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| HDFC Balanced Advantage Fund (G) | 43,078.53 | 1.72% | 12.56% | 14.35% | 9.95% | 19.76% |
| Nippon India Balanced Advantage Fund (G) | 6,076.41 | 1.93% | 2.74% | 10.26% | 7.67% | 15.08% |
| Aditya Birla SL Balanced Advantage Fund (G) | 6,671.99 | 1.85% | 1.54% | 10.94% | 7.75% | 12.60% |
3 Best Equity Savings Hybrid Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| HDFC Equity Savings Fund (G) | 2,502.00 | 2.11% | 4.60% | 9.55% | 7.25% | 9.17% |
| Sundaram Equity Savings Fund (G) | 382.50 | 2.36% | 6.84% | 11.58% | 8.25% | 8.21% |
| Kotak Equity Savings Fund (G) | 1,908.19 | 2.13% | 6.63% | 9.38% | 7.90% | 8.27% |
3 Best Multi Asset Allocation Hybrid Mutual Fund Schemes
| Scheme Name | AUM | TER | 1 Year Return% | 3 Years Return% | 5 Years Return% | Inc. Return% |
| ICICI Pru Multi-Asset Fund (G) | 13,015.98 | 1.84% | 17.55% | 17.54% | 12.28% | 20.94% |
| HDFC Multi-Asset Fund – (G) | 1,476.10 | 2.14% | 5.26% | 14.41% | 9.51% | 9.55% |
| AXIS Triple Advantage Fund (G) | 1,591.08 | 2.09% | 0.07% | 13.41% | 10.06% | 9.10% |
