Hybrid Funds

Hybrid funds invest in a mix of equities and debt securities. They seek to find a 'balance' between growth and income by investing in both equity and debt.

• The regular income earned from the debt instruments provide greater stability to the returns from such funds.
• The proportion of equity and debt that will be held in the portfolio is indicated in the Scheme Information Document.
• Equity oriented hybrid funds (Aggressive Hybrid Funds) are ideal for investors looking for growth in their investment with some stability.
• Debt-oriented hybrid funds (Conservative Hybrid Fund) are suitable for conservative investors looking for a boost in returns with a small exposure to equity.
• The risk and return of the fund will depend upon the equity exposure taken by the portfolio — Higher the allocation to equity, greater is the risk.

SEBI has classified Hybrid funds into 7 sub-categories as follows:

Solution-oriented & Other funds