Best Balanced Hybrid Mutual Funds

What are the features of Balanced Hybrid Funds?

• A minimum 40% allocation in equity or debt and the maximum is 60%

• The fund has a moderate risk profile

• Fund managers have the flexibility to increase or decrease the equity and debt exposure in tune with market movements

• Suitable for investors who are looking for stable returns with moderate risks

• Invest through SIPs or lump sum

What are the different types of hybrid funds?

What should be the investment horizon for Balanced Hybrid Funds?

• Balanced Hybrid Funds have the flexibility to be equity-oriented or debt-oriented

• As such, they have a moderate risk profile

• You can invest for a medium to long-term duration for attractive returns

What is the tax implication of Balanced Hybrid Funds?

• Balanced Hybrid Funds do not have a minimum of 65% allocation in equity

• As such, they attract debt taxation on the capital gains earned

• The returns earned are taxed at your income tax slab rates

• Dividends earned, if any, are taxed at your income tax slab rate

What are the payout options?

• Dividend option

  Earn dividends on your investment at regular intervals

• Growth option

  Accumulate the returns over the investment tenure and get a lump sum amount on redemption

Who should invest in Balanced Hybrid Funds?

• New equity investors

  You can protect against high volatility risks with moderate exposure to equity, which can change if the markets turn volatile

• Investors with a moderate risk profile

  Since the fund can switch between a high equity or debt exposure, they have a moderate risk profile and suit investors with the same risk profile

• Investors looking for good returns

  If you want equity-oriented returns with lower risks, Balanced Hybrid Funds can be a good choice.