What are balanced/hybrid funds in mutual funds?
Balanced or hybrid mutual fund schemes are designed to offer a mix of equity and debt investments within a single portfolio. These funds aim to generate moderate returns by balancing capital growth (via equities) with income stability (via debt instruments).
They are a popular choice for investors who want diversified exposure with reduced volatility, compared to pure equity schemes.
Key features of balanced/hybrid funds
- Invest in both equity and fixed-income securities
- Typically allocate 40%–60% to either asset class, based on fund strategy
- Offer lower risk than equity funds, but higher return potential than pure debt funds
- Available in categories like aggressive hybrid, conservative hybrid, dynamic asset allocation, etc.
What if...
| Scenario | Explanation |
|---|
| You want steady but growing returns | These funds aim for stable returns through debt and growth through equity. |
| You prefer one scheme over two separate funds | Hybrid funds combine equity and debt management in one product. |
| You’re a first-time investor | Balanced funds can ease you into market exposure without high volatility. |
| Market is volatile | Debt exposure cushions the impact of equity market swings. |
Balanced or hybrid funds are ideal for moderate-risk investors seeking a middle ground between aggressive growth and capital protection.
Last updated: 16 Jun 2025
Related Articles
Are there inherent risks when investing in mutual funds?
Yes, mutual funds—though professionally managed and diversified—do carry inherent risks. These funds invest in different asset classes such as stocks, bonds, or short-term money market instruments, all of which are subject to market dynamics. The ...
What are Direct Mutual Funds on FYERS?
When investing in mutual funds through FYERS, you'll notice the term Direct Mutual Funds. These funds offer the same portfolio as regular plans but without distributor commissions, often resulting in better returns over the long term. What are Direct ...
Is exit load a standard charge across all mutual funds?
No, exit load is not a universal or standard charge across all mutual fund schemes. Whether an exit load is applicable, and the percentage charged, depends entirely on the scheme’s structure as defined by the Asset Management Company (AMC). While ...
How do I invest in mutual funds through the FYERS web and app?
FYERS makes mutual fund investing seamless across both web and mobile platforms. You can explore schemes, start SIPs and make one-time investments—all in a few easy steps. Steps to invest in mutual funds on FYERS Log in to FYERS (Web or Mobile). ...
Can I Buy Regular Mutual Funds in FYERS?
Regular Mutual Funds are the funds bought by Mutual fund brokers, distributors & advisors. Currently, we are not catering to the services of Regular mutual funds. However, you can invest in Direct mutual funds through FYERS at Zero commissions. To ...