alexa
 FREE Credit Score  Watch Our Videos

Download Financial Freedom App and Start your journey to become RICH

Search in Indianmoney's WealthPedia

Hybrid Funds

Balance your investments with hybrid funds.
Just Leave a Missed Call on 022 6181 6111,
Our Money Doctor will reach you shortly !

Get the best advice on
Hybrid Funds

I have read and I agree to the Privacy Policy
 
Hybrid Funds
FAQ's Articles News Videos Education Calculator

Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel

Rate us
  • ★
  • ★
  • ★
  • ★
  • ★
5.0 / 5 based on 1 User Reviews

What is a hybrid mutual fund?

Hybrid mutual funds allow you to invest in a combination of debt and equity. These are also called balanced funds.
You have:

Equity Hybrid: In an equity hybrid fund, at least 65% of the corpus is invested in equities and the rest in debt. To be called an equity fund, at least 65% of the fund needs to be invested in equity. The remaining corpus is invested in debt up to a maximum of 35%.

Debt Hybrid: In a debt hybrid fund, at least 75% of the corpus is invested in debt and the rest in equities.

  • Ask Money Doctor

    Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.

  • Ask IndianMoney.com Money Doctor
Why invest in Hybrid Funds

Safety

Hybrid funds have an exposure to debt. This protects your investment when stock markets are volatile or crash.

 

Better than Debt Funds

When stock markets rise, or there is a bull run, the hybrid funds give better returns than debt funds.

 

Natural Diversification

With an exposure to both equity and debt the hybrid fund is naturally diversified. You don't have the headache of balancing the portfolio.

Tax Benefits

Equity hybrid funds are treated as equity, for tax purposes. Long term capital gains are tax exempt, just like equity.

 
Capital Protection Funds:

This debt oriented fund is close ended and has 80% in debt and 20% in equity. The huge proportion of debt ensures capital protection, as it is close ended in nature and the equity component helps in gaining decent returns in the stock markets. These funds cannot use the word "guaranteed" or "capital protection" .They can only be called as capital protection oriented. These funds purchase "AAA" rated debt or debt of very high quality, which helps the principal amounts grow over a fixed tenure. This protects the capital and the equity component generates returns, far in excess of its proportion, by investing in the options and futures market.

Monthly income plan (MIP)

These are basically debt oriented mutual funds which invest 75-80% of the corpus in debt and the rest in equity. These funds can be further divided into a monthly income plan with a dividend option and one with a growth option.

The dividend option helps to generate income in the form of dividends, which are tax free in the hands of the investors

In the growth option no dividend is paid .The amounts are reinvested in the fund itself. This increases the value of the fund and huge returns are obtained on liquidation of these funds.

If the MIP is sold for a profit within a year, it is called a short term capital gain. These amounts are added to your income and taxed as per the income tax slab you fall under. Long term capital gains beyond a year, are taxed at 20% with indexation benefits.

Tax Aspects of Hybrid Funds

Equity hybrids are taxed just like an equity mutual fund. If the equity hybrid is sold under a year, the short term capital gains are taxed at 15%.. If the equity hybrid is sold after a year there is no tax.

Debt hybrids are taxed just like a debt fund. Short term capital gains (gains under 3 years), are added to your taxable salary. Taxed as per income tax slab you fall under. Long term capital gains (gains over 3 years), are taxed at 20% with indexation.

 

Concepts & FAQ's Hybrid Funds

What is a Hybrid Mutual Fund?

Hybrid Mutual Funds are characterized by portfolio that is made up of a mix of stocks (equity) and bonds (debt). The mix and percentage can vary over time in reaction to the market conditions as perceived by the fund manager, or the mix could remain fixed.

The purpose of Hybrid Mutual Funds is to provide a balanced portfolio proving both growth and security to the investor's investments.

For what kind of investors is Hybrid Mutual Funds suitable?

Balanced funds are a good starting point for most first-time investors because of the pre-defined equity-debt mix

  • Ask Money Doctor

    Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.

  • Ask IndianMoney.com Money Doctor
Thinking of buying a Hybrid Funds ?

To be absolutely sure of WHAT TO LOOK OUT, talk to IndianMoney.com on the phone for FREE financial consultation.

Expert Financial Advisors from IndianMoney.com would provide you unbiased, correct and up to date information so that you can make an informed financial decision.

Frequently Asked Questions

What are equity funds?

Equity funds are those which invest primarily in stocks. Within equity funds, the structure of a particular fund may differ from that of another. Equity funds include diversified funds, market capitalization based funds, sector specific funds, theme based funds and tax saving funds. Equity funds are generally aimed at providing comparatively high returns within the mutual finds family, but with a relatively higher degree of risk.

How does an investor in equities make money?

Investors get returns on their investments in two ways - dividend and capital gains. The former depends on earning levels of the particular company and the decision of its management. The latter arises happens when the market price of the shares rises above the level at which the investment was made.

Why invest in equities?

Investing in equities/shares offers many benefits over other asset classes like a high level of liquidity which unlike property, gives you ready access to your money. There are more than 6000 companies listed on the stock market in which you can buy shares so there are plenty to choose from to match your investment needs.

Get the Best Financial Advice on Hybrid Funds Leave a Missed Call @ 022-6181-6111
 

Hybrid Funds Articles

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
Read Article

Want To Invest In Mutual Funds? Be An Early Bird

26 December 2017, Tuesday    

Investing in mutual funds is a great option if you want to earn handsome returns. If you are planning to invest in mutual funds, you should start as early as possible. Investing in mutual funds at a young age will give you the advantage of staying invested for long periods of time. Staying invest ....

Mutual Fund Investment sip Mutual Fund Mutual Fund Benefits

What is Risk Tolerance?

24 March 2009, Tuesday    

What is Risk Tolerance Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you u ....

Money Market Funds Child Education Plans Child Education Planning Investment Goal Risk Tolerance

Risks Involved in Investments

24 March 2009, Tuesday    

Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even small changes in the inflation may make a massive difference in the amount of money you have over time. You will still have the same amount of cash, but it may not buy as much. It's easy to purchase ....

LOAD MORE
 

Hybrid Funds News

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 
Home News
 

Cabinet approves launch of Bharat Bond ETF

Wednesday, December 4, 2019, 6:06 PM

The Cabinet today approved the launch of the Bharat Bond Exchange Traded Fund or ETF, which would be the first corporate bond ETF in the country. ETFs invest in a basket of securities representing an index, security or commodity and are traded on the stock exchange like any security listed on the exchange.
Mutual Funds Mutual Fund Mutual Fund News GOI Mutual Funds News MF Finance Minister Of India Nirmal Sitharaman Bharat Bond ETF

Mutual funds add around 5 lakh folios in Aug

Thursday, September 12, 2019, 5:38 PM

The mutual fund industry has added around 5L investors' account in August, taking the total tally to 8.53-crore, amid volatile market conditions. In comparison, the industry had added 10.29L new folios in July. Folios are numbers designated to individual investor accounts. An investor can have multiple folios. The total folio count stood at 8.38L in June, 8.32L in May and 8.27L in April.
Companies General Mutual Fund

Mutual fund SIP collection falls marginally to Rs 8,231 cr in August

Monday, September 9, 2019, 5:38 PM

Mutual fund investors continue to pour in money through SIPs. Mutual funds received Rs 8,230.76 crore via SIP in August, marginally lower than the collections last month, shows Amfi data. In July, mutual funds collected Rs 8,324 crore via SIPs. SIP AUM on the other hand has risen from Rs 2.69 lakh crore in July to Rs 2.71 lakh crore in August.
sip Mutual Fund Investment

LOAD MORE
 

Hybrid Funds Videos

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 

Learn to Save, Spend, Invest & Borrow Wisely with our Youtube Channel

Home Videos
Best Mid Cap Funds for 2021 In Telugu | Top Mutual Funds in India 2021 | Ajay Kumar

Best Mid Cap Funds for 2021 In Telugu | Top Mutual Funds in India 2021 | Ajay Kumar

10 Days Ago

Start your Journey to Become Rich with IndianMoney's Financial Freedom App, Download here: https://indianmoney.com/ffa/FmCSZ69pHo
Mutual Funds Mid Cap
Mutual Fund Taxation - How Are Mutual Funds Taxed? | Tax on Mutual Funds 2021 | C S Sudheer

Mutual Fund Taxation - How Are Mutual Funds Taxed? | Tax on Mutual Funds 2021 | C S Sudheer

10 Days Ago

Start your Journey to Become Rich with IndianMoney's Financial Freedom App, Download here: https://indianmoney.com/ffa/FmCSZ69pHo
Tax Planning Tax Mutual Fund
ಬಡವರಿಗೂ ಶ್ರೀಮಂತಿಕೆಯ ಏಣಿ ಈ ಹೂಡಿಕೆ! | What is (SIP) Systematic Investment Plan? | SIP in Kannada

ಬಡವರಿಗೂ ಶ್ರೀಮಂತಿಕೆಯ ಏಣಿ ಈ ಹೂಡಿಕೆ! | What is (SIP) Systematic Investment Plan? | SIP in Kannada

11 Days Ago

Start your Journey to Become Rich with IndianMoney's Financial Freedom App, Download here: https://indianmoney.com/ffa/FmCSZ69pHo
Mutual Funds sip

LOAD MORE
 

Hybrid Funds Education

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play
 
Home Education
 

What Is Financial Market?

Saturday, January 19, 2019, 6:00 PM

As the name suggests, financial market is a marketplace where the trading of financial instruments like bonds, mutual funds and shares takes place. It is an arrangement or institution that facilitates trading and where buyers and the sellers aggregate to trade in financial products. The financial market can be classified into the primary and secondary market.
Union Budget 2017 Mutual Fund Folio Advantages Of Including Parents In Employer’s Group Health Insurance Plans Greaves Cotton IL&FS LIC

What is a Systematic Investment Plan?

Wednesday, September 5, 2018, 5:28 PM

A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.
Mutual Funds Buffett`s Money Rules Taj Mahal Tirumala Tirupati Devasthanams

What is Net Asset Value (NAV)?

Wednesday, September 5, 2018, 11:19 AM

NAV is the total value of all the mutual funds assets minus the value of all its liabilities per unit. It is the price at which you buy or sell units of a mutual fund. The assets of a mutual fund are securities like equity shares, bonds, commercial papers and debentures. Accrued interest and dividends are also the assets of the Mutual Fund.
Mutual Funds Buffett`s Money Rules Bank Of Maharastra Tirumala Tirupati Devasthanams

LOAD MORE
 

Calculator

There is no Shortcut to become RICH, But here is a SECRET.Download the IndianMoney App and Be Wise & Get Rich

Google Play

Related Articles

26 December 2017, Tuesday

Want To Invest In Mutual Funds? Be An Early Bird

  • Investing in mutual funds is a great option if you want to earn handsome returns. If you are planning to invest in mutual funds, you should start as early as possible. Investing in mutual funds at a young age will give you the advantage of staying invested for long periods of time. Staying invest
24 March 2009, Tuesday

What is Risk Tolerance?

  • What is Risk Tolerance Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you u
24 March 2009, Tuesday

Risks Involved in Investments

  • Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even

Most Read Articles

18 July 2012, Wednesday

How to Make Claim on a health Insurance Policy?

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...

14 March 2014, Friday

ELSS - Utilizing the power of compounding

As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...

07 January 2014, Tuesday

Why One Must Never Neglect Estate Planning?

One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...

CIBIL Meter

Get FREE Credit Score now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.