Hybrid Mutual Funds
A simple, visual guide to hybrid categories in India — how they mix equity and debt, and the minimum allocation rules.
At a Glance
Allocations below are taken from your brief and simplified for quick reading.
1) Conservative Hybrid Fund
Live examples
Debt: 75–90% • Equity: 10–25%
Open‑ended hybrid scheme tilted to debt for lower volatility.
Conservative2a) Balanced Hybrid Fund
Live examples
Equity: 40–60% • Debt: 40–60%
Open‑ended balanced scheme mixing equity and debt.
Balanced2b) Aggressive Hybrid Fund
Live examples
Equity: 65–80% • Debt: 20–35%
Hybrid tilted to equity for higher growth potential.
Aggressive3) Dynamic Asset Allocation / Balanced Advantage
Live examples
- ICICI Prudential Balanced Advantage Fund
- HDFC Balanced Advantage Fund
- Nippon India Balanced Advantage Fund
Equity/ Debt: managed dynamically
Adjusts allocation based on models/valuation; seeks smoother ride across cycles.
Dynamic / BAF4) Multi‑Asset Allocation
Live examples
At least 3 asset classes • ≥ 10% each
Mix of equity, debt, and a third asset (e.g., gold); diversification by design.
Multi‑Asset5) Arbitrage Fund
Live examples
Equity & related: ≥ 65%
Seeks to exploit cash‑futures arbitrage; equity‑like taxation (typically treated as equity due to ≥ 65% equity/related exposure) with low net equity risk.
Arbitrage6) Equity Savings
Live examples
Equity & related: ≥ 65% • Debt: ≥ 10%
Blends equity, arbitrage, and debt for a balanced profile. Equity‑like taxation (due to ≥ 65% equity/related exposure); debt ≥ 10%.
Equity SavingsComparison Table
| Category | Equity Allocation | Debt Allocation | Other | Risk Profile | Taxation (Indicative) | Lock‑in |
|---|---|---|---|---|---|---|
| Conservative Hybrid | 10–25% | 75–90% | — | Lower | Debt taxation (prevailing rules) | No |
| Balanced Hybrid | 40–60% | 40–60% | — | Moderate | Debt taxation (prevailing rules) | No |
| Aggressive Hybrid | 65–80% | 20–35% | — | Moderate–High | Equity‑like taxation (due to ≥ 65% equity) | No |
| Dynamic Asset Allocation / BAF | Dynamic | Dynamic | — | Variable | Depends on scheme positioning; check factsheet | No |
| Multi‑Asset Allocation | ≥ 10% (min) | ≥ 10% (min) | ≥ 10% third asset (e.g., gold) | Moderate | Depends on mix; check scheme documents | No |
| Arbitrage | ≥ 65% (equity & related) | Balance | Futures/cash legs | Low–Moderate | Equity‑like taxation | No |
| Equity Savings | ≥ 65% (equity & related) | ≥ 10% | Arbitrage component | Moderate | Equity‑like taxation | No |
Bottom Line
Pick hybrids to match comfort with volatility: Conservative for stability, Balanced/Aggressive for growth, BAF for dynamic allocation, Multi‑Asset for diversification, Arbitrage for low‑risk equity taxation, and Equity Savings for blended exposure.