Mutual funds are an excellent investment option for investors looking for a diversified portfolio that can minimize risk and maximize returns. They are professionally managed investment schemes that pool together money from many different investors to invest in stocks, bonds, money market instruments, and other securities. One type of mutual fund that stands out in terms of returns and flexibility is hybrid mutual funds.
Hybrid mutual funds combine the safety of debt investments and the potential for higher returns from equity investments, making them a popular choice for investors looking to diversify their portfolios and safeguard their investments. This is achieved by investing in a mix of equity and debt instruments.
There are various categories of hybrid mutual funds available in the market, such as equity-oriented hybrid funds, balanced hybrid funds, and debt-oriented hybrid funds. As an investor, it is crucial to select the right category based on your investment goals, risk appetite, and financial objectives.
Here are some top picks for hybrid mutual fund investments in 2024:
1. ICICI Prudential Equity and Debt Fund
Investment Objective: The objective of this fund is to generate long-term capital appreciation from a portfolio of equity, equity-related securities, and debt instruments.
Asset Allocation: The fund invests 75% to 90% of its assets in equity and equity-related instruments and the remaining in debt securities and money market instruments.
Performance: The fund has consistently outperformed its benchmark and peers in the last five years, generating an average annual return of 13.6% since inception.
2. SBI Equity Hybrid Fund
Investment Objective: The objective of this fund is to provide long-term capital appreciation through a mix of equity and equity-related securities, debt, and money market instruments.
Asset Allocation: The fund invests 65% to 80% of its assets in equity and equity-related instruments, and the remaining in debt securities and money market instruments.
Performance: The fund has consistently delivered superior returns, generating an average annual return of 15.17% since inception.
3. HDFC Hybrid Equity Fund
Investment Objective: The objective of this fund is to provide long-term capital appreciation through a portfolio of equity and equity-related instruments, debt, and money market instruments.
Asset Allocation: The fund invests 65% to 80% of its assets in equity and equity-related instruments, and the remaining in debt securities and money market instruments.
Performance: The fund has delivered robust returns, generating an average annual return of 18.15% since inception.
4. Aditya Birla Sun Life Equity Hybrid ’95 Fund
Investment Objective: The objective of this fund is to provide long-term capital appreciation through an allocation to equity and equity-related instruments and fixed-income securities.
Asset Allocation: The fund invests 65% to 80% of its assets in equity and equity-related instruments, and the remaining in debt securities and money market instruments.
Performance: The fund has given exceptional returns since its inception, delivering an average annual return of 18.68%.
5. UTI Hybrid Equity Fund
Investment Objective: The objective of this fund is to generate long-term capital appreciation through a portfolio of equity and equity-related instruments, debt, and money market instruments.
Asset Allocation: The fund invests 65% to 80% of its assets in equity and equity-related instruments, and the remaining in debt securities and money market instruments.
Performance: The fund has delivered excellent returns on a consistent basis, generating an average annual return of 17.14% since its inception.
Investing in mutual funds is subject to market risks, and investors must read the scheme-related documents carefully before investing. The above-listed fund performances may vary, depending on the market condition. Hence, investors are advised to make informed decisions by thoroughly studying the fund’s prospectus, risk factors, investment strategy, portfolio, and other relevant information.
To conclude, hybrid mutual funds offer investors a perfect combination of equity and debt investments, providing a safety net to protect against market volatility and high potential for returns. The above-mentioned funds are reviewed by experts and have delivered impressive returns over the years, making them a top pick for investors looking for a diversified and long-term portfolio.
