Best HYBRID FUNDS to Invest – in 2019
Before hopping on to the best hybrid funds you can invest in 2019, let’s figure out what are Hybrid Funds?
HYBRID MUTUAL FUNDS
These funds are just like other type of mutual fund scheme that helps in increasing the value of your investment by establishing a respectable level of returns or by capital appreciation. Precisely, these funds came out as a solution to the individual drawbacks of Debt and Equity mutual funds. The choice of hybrid funds depends on your investment objective and risk-preference.
Hybrid Funds generate income in the short-run via balanced portfolio and achieve wealth appreciation in the long-run. The fund manager allocates your money in different propositions in debt and equity based on the investment. He can buy or sell securities to take appropriate advantage of market movements.
WHO SHOULD INVEST?
When we talk about safer bets, then Hybrid Funds can be counted as compared to pure equity funds. They provide high returns than debt funds and are favorite amongst conservative investors. Budding investors can think of these funds, only if they ready to take exposure in equity markets.
A look in detail:
- Debt-oriented Balanced Funds: It constitutes the investment in fixed income like debentures, treasury bills, bonds, government securities, etc. An asset-allocation of more than 60% in debt and rest in equity is known as debt-oriented balanced funds.
- Equity-oriented Hybrid Funds: Investing in 65% or more in equity and remaining in debt & money-market instruments is known as equity-oriented fund. Companies like finance, real estate, automobiles, FMCG, etc. carry the equity component.
- Monthly Income Plans: Funds that invest pre-dominantly in debt instruments are known as specified as monthly income plans. Monthly Income Plan or MIP generally carries 15-20% exposure to equities, thus, allowing to generate high-returns as compared to regular debt funds. Also, MIPs provide regular income in the form of dividends to the investor. The frequency of dividends can be monthly, quarterly, annually, or half-yearly.
- Balanced Funds: Balanced funds invest at-least 65% of their portfolio in equity-oriented and equity instruments, thus, allowing them to qualify as equity funds for taxation.
- Arbitrage Funds: Here, a fund manager tries to maximize returns by buying the stock at a low price, later, he sells at a higher price in another market.
BEST 5 HYBRID FUNDS IN INDIA
|Fund Name||1 Year||3 Year||5 Year|
|Tata Retirement Savings Fund – Moderate Plan||14.95||11.68||20.87|
|HDFC Balanced Fund||11.21||10.51||19.42|
|L&T India Prudence Fund||10.71||10.19||19.2|
|Principal Balanced Fund||17.97||13.57||18.35|
|ICICI Prudential Balanced Fund||8.93||10.55||18.31|
According to Gulaq Methodology Below Hybrid Funds are Recommended.
|Canara Robeco Equity Hybrid Fund|
|Mirae Asset Hybrid – Equity|
|SBI Equity Hybrid Fund|
|Canara Robeco Conservative Hybrid Fund|
|LIC MF Debt Hybrid Fund|
|HSBC Regular Savings Plan|
|IDFC Arbitrage Fund|
|DSP Arbitrage Fund|
|UTI Arbitrage Fund|
Returns are subject to change, also, the order of funds mentioned-above doesn’t suggest any kind of recommendations.
HOW TO INVEST IN HYBRID FUNDS via GULAQ (originally spelled as gullak)?
You can invest through Gulaq (originally spelled as gullak) in hassle-free and paperless manner. Here:
- Sign-up for an account at gulaq.com
- Enter your details like the amount of investment, investment period.
- Get your KYC verified for FREE in 60 seconds.
- Invest in the fund you are looking forward to invest-in.
- Else, you can talk to the experts if there is any fuss.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.