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Top Hybrid Mutual Funds - Best Funds, Benefits & Risks

Hybrid funds have emerged as a popular investment choice for investors seeking a balanced approach to risk and return. According to data from the Association of Mutual Funds in India (AMFI), hybrid funds have witnessed a steady growth in assets under management (AUM), reaching over ₹2 lakh cr in 2024.

Top Hybrid Mutual Funds in 2025

Top Hybrid Funds in India (2025)

Here's the list of top hybrid funds in India (2025).

Created by

@82600328260032

Showing 1 - 20 of 182 results

last updated at 8:00 AM IST 
NameMFs (182)↓↓Sub CategorySub Category↓↓PlanPlan↓↓AUMAUM↓↓NAVNAV↓↓Absolute Returns - 3MAbsolute Ret. - 3M↓↓Absolute Returns - 1YAbsolute Ret. - 1Y↓↓CAGR 3YCAGR 3Y↓↓Expense RatioExpense Ratio↓↓Exit LoadExit Load↓↓VolatilityVolatility↓
1.HDFC Balanced Advantage Fund
HDFC Balanced Advantage Fund
Balanced Advantage Fund
Balanced Advantage Fund
Growth
Growth
1,06,493.55
1,06,493.55
576.61
576.61
3.85
3.85
5.73
5.73
18.11
18.11
0.73
0.73
1.00
1.00
8.06
8.06
2.SBI Equity Hybrid Fund
SBI Equity Hybrid Fund
Aggressive Hybrid Fund
Aggressive Hybrid Fund
Growth
Growth
81,951.86
81,951.86
343.30
343.30
3.92
3.92
11.13
11.13
14.30
14.30
0.72
0.72
1.00
1.00
8.73
8.73
3.Kotak Arbitrage Fund
Kotak Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
72,279.21
72,279.21
41.10
41.10
1.56
1.56
7.03
7.03
7.93
7.93
0.44
0.44
0.25
0.25
0.82
0.82
4.ICICI Pru Multi-Asset Fund
ICICI Pru Multi-Asset Fund
Multi Asset Allocation Fund
Multi Asset Allocation Fund
Growth
Growth
71,900.48
71,900.48
895.00
895.00
6.11
6.11
15.78
15.78
19.75
19.75
0.69
0.69
1.00
1.00
6.51
6.51
5.ICICI Pru Balanced Advantage Fund
ICICI Pru Balanced Advantage Fund
Balanced Advantage Fund
Balanced Advantage Fund
Growth
Growth
68,449.94
68,449.94
86.51
86.51
3.85
3.85
11.20
11.20
14.05
14.05
0.87
0.87
1.00
1.00
5.96
5.96
6.ICICI Pru Equity & Debt Fund
ICICI Pru Equity & Debt Fund
Aggressive Hybrid Fund
Aggressive Hybrid Fund
Growth
Growth
48,071.30
48,071.30
457.44
457.44
4.21
4.21
11.26
11.26
19.33
19.33
0.94
0.94
1.00
1.00
8.92
8.92
7.SBI Arbitrage Opportunities Fund
SBI Arbitrage Opportunities Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
39,858.59
39,858.59
36.89
36.89
1.53
1.53
7.00
7.00
7.80
7.80
0.40
0.40
0.25
0.25
0.79
0.79
8.SBI Balanced Advantage Fund
SBI Balanced Advantage Fund
Balanced Advantage Fund
Balanced Advantage Fund
Growth
Growth
38,628.37
38,628.37
16.61
16.61
4.70
4.70
8.30
8.30
14.69
14.69
0.73
0.73
1.00
1.00
6.45
6.45
9.ICICI Pru Equity-Arbitrage Fund
ICICI Pru Equity-Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
32,195.64
32,195.64
37.75
37.75
1.52
1.52
6.94
6.94
7.73
7.73
0.40
0.40
0.25
0.25
0.84
0.84
10.Invesco India Arbitrage Fund
Invesco India Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
27,150.96
27,150.96
35.44
35.44
1.62
1.62
7.08
7.08
7.94
7.94
0.39
0.39
0.50
0.50
0.83
0.83
11.HDFC Hybrid Equity Fund
HDFC Hybrid Equity Fund
Aggressive Hybrid Fund
Aggressive Hybrid Fund
Growth
Growth
24,684.07
24,684.07
131.11
131.11
3.23
3.23
4.65
4.65
12.25
12.25
1.01
1.01
1.00
1.00
8.26
8.26
12.Aditya Birla SL Arbitrage Fund
Aditya Birla SL Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
24,255.89
24,255.89
29.40
29.40
1.59
1.59
7.14
7.14
7.85
7.85
0.31
0.31
0.25
0.25
0.80
0.80
13.HDFC Arbitrage-WP
HDFC Arbitrage-WP
Arbitrage Fund
Arbitrage Fund
Growth
Growth
23,009.16
23,009.16
20.69
20.69
1.53
1.53
6.87
6.87
7.71
7.71
0.41
0.41
0.25
0.25
0.84
0.84
14.HDFC Arbitrage Fund
HDFC Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
23,009.16
23,009.16
32.80
32.80
1.53
1.53
6.87
6.87
7.71
7.71
0.41
0.41
0.25
0.25
0.84
0.84
15.Tata Arbitrage Fund
Tata Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
20,106.78
20,106.78
15.51
15.51
1.55
1.55
7.13
7.13
7.89
7.89
0.32
0.32
0.25
0.25
0.77
0.77
16.Kotak Balanced Advantage Fund
Kotak Balanced Advantage Fund
Balanced Advantage Fund
Balanced Advantage Fund
Growth
Growth
17,874.24
17,874.24
22.85
22.85
3.17
3.17
5.49
5.49
12.72
12.72
0.57
0.57
1.00
1.00
7.61
7.61
17.ICICI Pru Equity Savings Fund
ICICI Pru Equity Savings Fund
Equity Savings
Equity Savings
Growth
Growth
16,994.08
16,994.08
25.00
25.00
2.46
2.46
8.18
8.18
9.37
9.37
0.50
0.50
0.25
0.25
2.21
2.21
18.Edelweiss Arbitrage Fund
Edelweiss Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
16,687.08
16,687.08
21.35
21.35
1.57
1.57
7.06
7.06
7.87
7.87
0.39
0.39
0.25
0.25
0.81
0.81
19.Nippon India Arbitrage Fund
Nippon India Arbitrage Fund
Arbitrage Fund
Arbitrage Fund
Growth
Growth
15,894.51
15,894.51
29.43
29.43
1.58
1.58
6.90
6.90
7.73
7.73
0.38
0.38
0.25
0.25
0.83
0.83
20.Edelweiss Balanced Advantage Fund
Edelweiss Balanced Advantage Fund
Dynamic Asset Allocation Fund
Dynamic Asset Allocation Fund
Growth
Growth
13,238.71
13,238.71
59.70
59.70
3.77
3.77
6.13
6.13
13.09
13.09
0.53
0.53
1.00
1.00
8.64
8.64
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Selection criteria: Category: Hybrid | Plan: Growth | AUM: Sorted from Highest to Lowest

What are Hybrid Mutual Funds?

Hybrid funds are a type of mutual fund that is typically a combination of equity and debt investments. In essence, a hybrid fund invests in two or more asset classes and diversifies across a mix of bonds, stocks, commodities and other securities. These funds are great for investors who want a carefully crafted portfolio having exposure to both debt and equity.
With hybrid funds, you, as an investor, can avoid the risk of concentration in the portfolio and achieve a calculated blend of both debt and equity that offer higher returns alongside some level of capital protection than what a single debt or equity fund offers.



How do Hybrid Mutual Funds Work?

Also known as asset allocation funds, hybrid funds allow investors to invest in multiple asset classes via a single fund. They have varying levels of risk associated with them, which helps investors determine what the right mix for them is. The fund manager of a hybrid fund will allocate your money in predetermined ratios in equity and debt instruments.
The percentage mix of debt to equity in hybrid funds depends on your choice, risk profile, and financial goal. These funds give you the best of both worlds and help you achieve your financial goal with the right amount of risk. A combination of both these can also offset the negative repercussions of a crisis in the debt or equity market.

Overview of the Top Hybrid Funds

HDFC Balanced Advantage Fund

HDFC Balanced Advantage Fund is a dynamic asset allocation fund that adjusts equity exposure between 0-100% based on market valuations. Uses a counter-cyclical strategy to increase equity during market downturns and reduce exposure during rallies, with remaining assets in debt instruments.

SBI Equity Hybrid Fund

SBI Equity Hybrid Fund is an maintaining 65-80% allocation in equities and equity-related instruments, with 20-35% in debt securities. Focuses on diversified equity holdings across market capitalizations while using debt for stability and income generation.

Kotak Arbitrage Fund

Kotak Arbitrage Fund exploits price differentials between cash and derivatives markets through arbitrage opportunities. Maintains equity taxation benefits while targeting debt-like returns with lower volatility. Suitable for short-term parking with tax efficiency compared to liquid funds.

ICICI Pru Multi-Asset Fund

ICICI Pru Multi-Asset Fund invests across at least three asset classes including equities, debt, and commodities (typically gold). Maintains minimum 10% allocation in each asset class to provide diversification benefits and reduce concentration risk through multi-asset exposure.

ICICI Pru Balanced Advantage Fund

ICICI Pru Balanced Advantage Fund employs a dynamic asset allocation model adjusting equity exposure from 30-80% based on proprietary valuation metrics. Manages equity risk through automatic rebalancing while maintaining debt allocation for portfolio stability and downside protection.

How to Invest in Green Energy Mutual Funds?

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Here’s how you can identify and invest in top hybrid mutual funds with Tickertape Mutual Fund Screener -

  1. Launch Tickertape Mutual Fund Screener.
  2. Under the Category search for “Hybrid funds”.
  3. Sort out the hybrid funds based on over 50 fundamental and technical filters.
  4. After identifying the hybrid mutual fund that aligns with your investment thesis, click on “Place Order” to invest in the mutual fund.

With Tickertape Mutual Fund Screener, you can invest via ‘lumpsum’ or start a ‘SIP’ in Hybrid Mutual Funds. Moreover, by connecting your portfolio, you can do a deep analysis of your portfolio and assess its performance.

Taxation on Hybrid Mutual Funds

Understanding the latest tax regulations on hybrid funds is crucial for managing your investments efficiently. The Union Budget 2024 has introduced several changes impacting the taxation of hybrid mutual funds. Here’s a detailed breakdown of the new tax rules:

Type of Fund Short-Term Capital Gains (STCG) Long-Term Capital Gains (LTCG) Indexation Benefits
Equity-Oriented Hybrid Funds 20% for holdings less than 1 year 12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free Not available
Debt-Oriented Hybrid Funds Taxed as per income tax slab for holdings less than 3 years 12.5% for holdings over 3 years Not available

Types of Hybrid Mutual Funds

Conservative Hybrid Fund

Conservative hybrid funds keep 75-90% in debt instruments and 10-25% in equities. The heavy debt allocation delivers stability and regular income. The limited equity exposure adds modest growth potential.

Balanced Hybrid Fund

Balanced hybrid funds allocate 40-60% to equity and put the remainder in debt. This near-equal split lets investors participate in equity market upside. At the same time, debt holdings cushion volatility.

Aggressive Hybrid Fund

Aggressive hybrid funds keep 65-80% in equities and 20-35% in debt. These funds prioritize capital appreciation. The high equity component drives growth. The debt allocation provides some downside protection during market corrections.

Balanced Advantage Fund

Balanced advantage funds work differently from static allocation funds. They dynamically adjust equity exposure from 0-100% based on market valuations. Fund managers increase equity during market dips. They reduce exposure when valuations appear stretched. This counter-cyclical approach helps manage volatility while capturing market opportunities.

Dynamic Asset Allocation Fund

These funds work similarly to balanced advantage funds. They actively rebalance between equities and debt based on market conditions. This flexibility helps them navigate different market cycles. Equity exposure typically ranges between 30-80% depending on prevailing valuations and proprietary models.

Arbitrage Fund

These funds exploit price differences between cash and derivatives markets. They simultaneously buy in one market and sell in another. Arbitrage funds generate relatively stable returns with minimal risk. They offer equity taxation benefits.

Equity Savings Fund

Equity savings funds combine three components. They put 30-50% in equity investments, 20-40% in arbitrage opportunities, and 20-30% in debt instruments. The equity exposure provides growth. Arbitrage adds stability. Debt generates income. This creates a balanced portfolio with moderate risk.

Multi Asset Allocation Fund

These funds invest across at least three asset classes. They commonly use equities, debt, and gold. SEBI mandates minimum 10% allocation in each asset class. This diversification across non-correlated assets reduces portfolio volatility. Gold exposure often performs well during equity market downturns.

Features of Hybrid Mutual Funds

Combined Asset Allocation

Hybrid funds invest in a combination of debt and equity instruments. The allocation varies by fund type. Some funds maintain 75-90% in debt, while others keep 65-80% in equities. This mix gives investors exposure to both asset classes through a single fund.

Professional Management

A fund manager handles all investment decisions for the portfolio. This includes determining the percentage of exposure to each asset class, selecting individual securities, and executing buying and selling decisions. The manager also rebalances the portfolio based on market conditions and the fund's mandate.

Risk Management

These funds are known for better risk management compared to pure equity funds. The debt component acts as a stabiliser when equity markets fall. The equity portion provides growth potential when markets rise. This balance helps manage overall portfolio volatility.

Discretionary Diversification

The funds offer diversification at the investor's discretion. Investors can choose from seven different types of hybrid funds based on their risk appetite. Conservative variants provide more debt exposure, while aggressive variants tilt towards equities.

Dual Classification

Hybrid funds can be debt-oriented or equity-oriented. Funds with over 65% equity allocation are classified as equity-oriented. Those with less than 65% equity are classified as debt-oriented. This classification determines the taxation treatment applicable to the fund.

Taxation Structure

Equity-oriented hybrid funds held for more than a year attract 12.5% long-term capital gains tax, with gains up to ₹1.25 lakh remaining tax-free. Funds held for less than a year face 20% short-term capital gains tax. Debt-oriented mutual fund gains are taxed as per the income tax slab for short-term holdings and at 12.5% for long-term holdings exceeding three years.

Benefits of Investing in Hybrid Mutual Funds

Diversification

Hybrid funds spread investments across both equity and debt instruments. This dual allocation reduces concentration risk compared to single-asset funds. Fund managers often diversify the equity portion further across small-cap, mid-cap, and large-cap segments.

Risk Management

The mix of equity and debt creates a buffer against market volatility. When equity markets decline, the debt portion provides stability. Historical data shows hybrid funds have lower volatility compared to pure equity funds. The debt allocation cushions the impact during market corrections and reduces overall portfolio drawdowns.

Flexibility

Hybrid funds come in multiple variants ranging from conservative to aggressive. Conservative hybrid funds allocate 75-90% to debt, while aggressive variants put 65-80% in equities. This range lets investors pick funds that match their risk tolerance. They don't need to build and rebalance portfolios manually.

Cost and Convenience

Hybrid funds typically charge lower expense ratios than maintaining separate equity and debt fund investments. Expense ratios generally range between 0.5-2%. These funds accept investments through SIPs starting from as low as ₹500. This enables rupee cost averaging. Fund managers handle rebalancing automatically.

Risks of Investing in Hybrid Mutual Funds

Market Risk

Hybrid funds remain exposed to equity market volatility. When stock markets decline sharply, the equity portion loses value. Even conservative hybrid funds with 10-25% equity allocation see some impact during market corrections. The debt portion provides only partial protection, not complete insulation from market downturns.

Interest Rate Risk

The debt component faces interest rate fluctuations. When interest rates rise, bond prices fall. This reduces the value of debt holdings and affects overall fund performance. Funds with longer duration debt instruments see greater price volatility during interest rate changes. Funds holding shorter duration papers face less volatility.

Credit Risk

Hybrid funds investing in corporate bonds face credit risk. If bond issuers default or get downgraded, the debt portfolio suffers losses. This increases exposure to potential defaults. Credit events can significantly impact fund returns, particularly in conservative and balanced hybrid variants where debt forms a major portion.

Lower Returns

Hybrid funds typically generate lower returns than pure equity funds over long periods. The debt allocation reduces volatility but also limits upside potential during strong bull markets. Investors seeking maximum capital appreciation may find hybrid funds fall short of their expectations.

Inconsistent Performance

Dynamic and balanced advantage funds depend heavily on fund manager decisions. The timing of equity-debt rebalancing directly impacts returns. Poor tactical calls can hurt performance. These include reducing equity before a rally or increasing it before a correction. Different funds following similar strategies often show varying results.

Tax Inefficiency

Debt-oriented hybrid funds (with less than 65% equity) face less favourable taxation. Short-term gains get taxed at income tax slab rates, which can reach 30% for high earners. Long-term gains are taxed at 12.5% without indexation benefits. This makes them less tax-efficient compared to equity-oriented funds or traditional debt in

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Factors to Consider Before Investing in Hybrid Mutual Funds

Risk-return assessment

Based on the type of hybrid fund you opt for, understand the risk associated with it. An equity-oriented hybrid fund will be riskier than a balanced fund or a debt-oriented fund. Remember, no investment in the equity market is risk-free. This is why it is better to exercise caution and choose the proportion of equity and debt funds in a disciplined manner.

Investment horizon

Understand your goals and pick a hybrid fund that matches them. For instance, you may want to invest in balanced funds with a dividend option for your retirement.

Cost

Like all other funds, hybrid funds with high returns also charge a fee to manage your portfolio. When opting for a hybrid fund, one must look for a low expense ratio.

Investment strategy

While hybrid funds allow investment in multiple asset classes, there must be a sound strategy for choosing these. Fund managers must carefully select a combination of assets without the investors’ influence.

Who Can Consider Hybrid Funds?

New Investors

First-time investors can consider hybrid funds as they provide equity exposure with lower volatility. New investors get adequate exposure to equity markets whilst limiting downside risk. This helps them understand market cycles without experiencing the full impact of equity market swings.

Moderate Risk Takers

Less conservative investors can consider hybrid funds for long-term goals. These investors want to take a reasonable amount of risk whilst having a cushion against market fluctuations. Balanced and aggressive hybrid funds give them equity exposure for wealth creation. At the same time, the debt component provides some protection during corrections.

Goal-Based Investors

Investors with medium-term financial goals spanning 3-5 years have historically used hybrid funds. These goals might include purchasing property, funding education, or building an emergency corpus. The balanced structure aims to generate reasonable returns whilst managing volatility over this time horizon.

Tax-Conscious Investors

Equity-oriented hybrid funds offer tax advantages over traditional fixed deposits. Long-term gains up to ₹1.25 lakh remain tax-free. Gains beyond this threshold are taxed at 12.5%. Fixed deposit interest, in contrast, gets taxed at slab rates which can reach 30% for high earners.

Conclusion

Hybrid funds carry risks including market volatility, interest rate fluctuations, credit events, and potential underperformance during strong bull markets, with taxation treatment varying based on equity or debt orientation. Investors need to evaluate their risk tolerance, investment horizon, and financial goals when selecting fund variants. Tickertape's Mutual Fund Screener lets investors filter and compare hybrid funds based on returns, expense ratios, asset allocation, risk metrics, portfolio holdings, and fund manager track records to support research and comparison across different fund types.

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Frequently Asked Questions About Hybrid Mutual Funds

  1. What are hybrid funds?

    Hybrid funds are mutual funds that invest in a combination of equity and debt instruments within a single portfolio. They offer diversification across asset classes with varying allocation ratios, aiming to balance growth potential from equities with stability from debt securities.

  2. What are the best hybrid mutual funds?

    Here are the top hybrid mutual funds based on their 6Y CAGR:

    1. Quant Multi Asset Allocation Fund
    2. ICICI Pru Equity & Debt Fund
    3. ICICI Pru Multi-Asset Fund
    4. HDFC Balanced Advantage Fund
    5. Bank of India Mid & Small Cap Equity & Debt Fund

    Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

  3. How can you invest in Hybrid Mutual Funds?

    Here’s how you can start investing in hybrid mutual funds:

    1. Launch the Tickertape Mutual Fund Screener.
    2. Select the Hybrid Fund that matches your investment goals and risk appetite.
    3. Click on “Place Order” and choose the “SIP” option. Enter your preferred SIP amount and confirm “OK”.

    Your order will be placed.

  4. Which is better, a hybrid or an equity fund?

    Hybrid funds offer lower volatility through debt allocation but deliver modest returns (9-11% annually). Equity funds provide higher growth potential (12-15% annually) with greater volatility. The choice depends on individual risk tolerance, investment horizon, and financial objectives rather than one being universally better.

  5. Are hybrid funds high risk?

    Hybrid funds carry moderate risk, falling between debt and equity funds. Risk levels vary by type, conservative variants with 75-90% debt have lower risk, whilst aggressive variants with 65-80% equity face higher volatility.

  6. Can I use hybrid funds for retirement?

    Hybrid funds have been used for retirement planning due to their balanced allocation of equity and debt. The choice between conservative, balanced, or aggressive variants depends on factors including retirement timeline, risk tolerance, income requirements, and overall portfolio composition.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.