Best Hybrid Mutual Funds to Invest in 2024
Best Hybrid Mutual Funds to Invest in 2024
Blog Article
Hybrid mutual funds offer investors the benefits of both equity and debt investments by diversifying across asset classes. These funds are ideal for investors looking for a balanced approach to risk and return. In this article, we will explore the best hybrid mutual funds to consider in 2024.
Why Invest in Hybrid Mutual Funds?
- Diversification – Hybrid funds invest in both equity and debt instruments, reducing overall portfolio risk.
- Balanced Risk-Return – They offer a mix of growth from equities and stability from debt instruments.
- Ideal for Conservative Investors – Hybrid funds provide a middle ground between aggressive equity funds and conservative debt funds.
Top Hybrid Mutual Funds for 2024
1. HDFC Balanced Advantage Fund
- Expense Ratio: ~1.6%
- 5-Year CAGR: ~12%
- Why Invest? This fund dynamically allocates assets between equity and debt to manage market fluctuations effectively.
2. ICICI Prudential Equity & Debt Fund
- Expense Ratio: ~1.8%
- 5-Year CAGR: ~14%
- Why Invest? A well-managed fund that provides steady returns through strategic asset allocation.
3. SBI Equity Hybrid Fund
- Expense Ratio: ~1.7%
- 5-Year CAGR: ~13%
- Why Invest? The fund has a strong track record and provides a stable investment option.
4. Mirae Asset Hybrid Equity Fund
- Expense Ratio: ~1.5%
- 5-Year CAGR: ~15%
- Why Invest? The fund maintains a strong balance between equity growth and debt stability.
5. Axis Equity Hybrid Fund
- Expense Ratio: ~1.6%
- 5-Year CAGR: ~12%
- Why Invest? It is suitable for conservative investors looking for stable growth with moderate risk.
Factors to Consider Before Investing
- Investment Horizon: Hybrid funds are suitable for medium to long-term investments (3-5 years).
- Risk Tolerance: These funds have lower volatility compared to pure equity funds but still carry market risk.
- Expense Ratio: A lower expense ratio helps maximize returns.
- Fund Performance: Past performance, consistency, and fund manager expertise are crucial considerations.
Final Thoughts
Hybrid mutual funds offer an excellent way to diversify investments while maintaining a balanced risk-reward ratio. However, investors should carefully evaluate their risk appetite, investment goals, and fund performance before making a decision. Periodic portfolio review ensures alignment with financial objectives.
Disclaimer: Mutual fund investments are subject to market risks. Please consult a financial advisor before investing. Report this page