A hybrid fund is a type of mutual fund that invests in two or more asset classes at the same time. The majority of funds invest in a mix of equities and bonds. Other assets such as gold, commodities, and real estate investment trusts (REITs) are included in certain hybrid funds' asset allocations.
A hybrid fund seeks to balance asset allocations across asset classes in order to diversify the portfolio and reduce the risk for the client. The investor's risk appetite, financial goals, and investment horizon are usually taken into account when allocating debt and equity.
What are the benefits of investing in these mutual funds: Should you Invest?
Investing in a variety of asset types can help to lessen risk. This means that the high volatility of an asset class like stocks is offset by exposure to debt and gold.
These funds provide a pre-made, diversified investment portfolio that is maintained by a fund manager, eliminating your need to track market fluctuations on a daily basis.
The importance of diversifying one's portfolio across asset classes such as stocks, bonds, gold, and other assets cannot be emphasized, and the case for doing so has already been made.
Returns on a variety of asset classes, including domestic stock, international stocks, gold, and to a lesser extent debt, change dramatically year after year. In certain years, equity returns might be fantastic, but in others, they can be negative.
Multi-asset funds can provide a well-balanced investment portfolio by generating potential rewards while lowering risk exposure.
Top perming Hybrid Multi Allocation Fund
Quant Multi-Asset Fund - Direct Plan-Growth and ICICI Prudential Multi-Asset Fund - Direct Plan-Growth funds has outperformed in 1-year, 2year, 3 years and 5 years annualized returns when compared to its category average returns in the same period of time. While the ICICI Prudential Multi-Asset Fund - Direct Plan-Growth outperformed in 2 and 3 year time period, and Axis Triple Advantage Fund - Direct Plan-Growth
in 3 year.
Annualised Returns
| Mutual Fund | 1 Year | 2 Year | 3 Year | 5 Year | Since Inception |
|---|---|---|---|---|---|
| Quant Multi Asset Fund - Direct Plan - Growth | 42.53% | 39.82% | 27.92% | 17.97% | 13.26% |
| ICICI Prudential Multi-Asset Fund - Direct Plan - Growth | 23.05% | 27.73% | 18.74% | 14.02% | 15.75% |
| Axis Triple Advantage Fund - Direct Plan - Growth | 12.36% | 18.58% | 17.89% | 13.47% | 10.66% |
| HDFC Multi-Asset Fund - Direct Plan - Growth | 12.34% | 18.69% | 15.49% | 10.79% | 10.79% |
| Navi 3 in 1 Fund - Direct Plan - Growth | 11.08% | 15.86% | 13.42% | 10.06% | 9.33% |
SIP - Absolute Returns
| Mutual Fund | 1 Year | 2 Year | 3 Year | 5 Year |
|---|---|---|---|---|
| Quant Multi Asset Fund - Direct Plan - Growth | 8.93% | 46.26% | 64.40% | 86.62% |
| ICICI Prudential Multi-Asset Fund - Direct Plan - Growth | 10.21% | 35.16% | 43.11% | 55.02% |
| Axis Triple Advantage Fund - Direct Plan - Growth | 1.19% | 19.69% | 29.67% | 45.53% |
| HDFC Multi-Asset Fund - Direct Plan - Growth | 2.45% | 19.25% | 28.27% | 39.39% |
| Navi 3 in 1 Fund - Direct Plan - Growth | 2.18% | 18.27% | 25.13% | 35.84% |
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
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