HDFC Hybrid Debt Fund

The HDFC Hybrid Debt Fund is a conservative, open-ended, hybrid fund devised to generate regular income for its investors. It invests a significant chunk of its fund in debt funds and other money market instruments.

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An Overview: HDFC Hybrid Debt Fund 

The balance funds are invested in the equity market. Thus, the fund investments are spread across the market, including economic sectors, industries, debt securities, etc.

The HDFC Hybrid Debt Fund is offered by the HDFC Mutual Fund (HDFC MF) and has been in the market for more than 17 years. It holds Rs 2500.23 crore (as of May 31, 2021) as assets under management (AUM) and has consistently procured profiting returns for investors. The Fund invests 75-90% of its funds in Indian stocks and the remaining 25-10% in low-risk debt securities.

The HDFC Hybrid Debt Fund plan offers two options:

  • HDFC Hybrid Debt Fund – Regular Plan
  • HDFC Hybrid Debt Fund – Direct Plan

The Direct Plan requires no distributors in between for purchases and hence, ensures a higher return of up to 0.43% compared to the Regular Plan.

Both these variants come with two further options: Growth and Income Distribution and Cash Withdrawal (IDCW) option. The IDCW option allows the investor to withdraw the dividend earned, while the growth option automatically reinvests the dividend, resulting in compounded returns.

The IDCW option is offered with two sub-options:

  • IDCW payout or reinvestment – monthly
  • IDCW payout or reinvestment – quarterly

The significant holdings of this fund are held by State Bank of India, ICICI Bank Ltd., ITC Ltd., Larsen and Toubro Ltd., NTPC Limited, Infosys Limited, etc.

Facts About HDFC Hybrid Debt Fund

The table below highlights some important facts about HDFC Hybrid Debt Fund:

Name of the fund house

HDFC Mutual Fund

Scheme type

Conservative Hybrid Debt Fund

Risk factor


Launch date

Regular Plan - December 26, 2003

Direct Plan – January 1, 2013


NIFTY 50 Hybrid Composite Debt 15:85 Index

Exit load

  • No exit load if units are redeemed within the limit (15%) from the date of allotment.
  • If the limit is exceeded, then 1% exit load for exit within 1 year of allotment.
  • After 1 year, the exit load becomes nil.

Investment required

Minimum – Rs 5,000

For additional purchase – Rs 1,000

Investment time

More than 18 months

Benefits of the HDFC Hybrid Debt Fund

Here is a rundown of the benefits of Hybrid Debt Fund:

  1. Long-term Returns

    The fund generates good returns in the long run of investment. Hence, it is a profitable option for investing in the present and financially securing the future.

  2. Dual Benefit

    The fund not only secures the future but also aims at providing regular income to the investors through the option of IDCW monthly payout of dividend. 

  3. Long Run in the Market

    The fund has been in the market for 17 years and has faced the tests of time, and has been successful in fulfilling the investment objective, hence, meeting the customers' expectations.

  4. Consistent Performance

    Even though the fund has a high-risk factor, the risk mitigation strategies have worked well. As a result, the fund has performed consistently well since its inception and has generated good returns for its investors.

HDFC Hybrid Debt Fund Summary

The HDFC Hybrid Debt Fund aims at generating income and multiplying the capital invested for its investors. It does so by investing a significant chunk in low-risk debt securities and exposing a moderate percentage of its funds to equities.

The investment in stocks is spread across the market, and equities of only those companies are selected which offer an acceptable risk-reward balance. In addition, as it is a hybrid fund, it can invest in all types of debt securities and money market instruments. 

Like any other mutual fund plan, the HDFC Hybrid Debt Fund plan also carries some risk. To mitigate them, the fund evaluates every single investment opportunity based on liquidity, credit, interest, etc. before making the decision. 

  1. HDFC Hybrid Debt Fund Regular Plan

    • Risk – High
    • Expense Ratio – 1.89% (on May 31 2021)
    • Net Asset Value (NAV) – Rs 56.40 (on June 21 2021)
    • Returns – 22.92% (1 year)
  2. HDFC Hybrid Debt Fund Direct Plan

    • Risk – High
    • Expense Ratio – 1.46% (on May 31 2021)
    • Net Asset Value (NAV) – Rs 58.79 (on June 21 2021)
    • Returns – 23.43% (1 year)

    Among the Growth and the IDCW option, the Growth option is considered the default. In addition, among the two sub-options of IDCW, payout quarterly is regarded as the default.

Hybrid Debt Fund Return Summary

The following table presents the return summary of the HDFC Hybrid Debt Fund for the regular plan:


Annualized Percentage Return

Present value of Rs 10,000 invested

1 year


Rs 12,292

3 year


Rs 13,155

5 year


Rs 15,291

Since inception


Rs 56,407

The following table shows the return summary of the HDFC Hybrid Debt Fund for the direct plan:


Annualized Percentage Return

Present value of Rs 10,000 invested

1 year


Rs 12,342

3 year


Rs 13,331

5 year


Rs 15,691

Since inception


Rs 22,207

Pros and Cons of Hybrid Debt Fund

The table shows the pros and cons of Hybrid Debt Fund briefly:



Works on a dual motive of income generation and capital appreciation.

Carries a high-risk factor.

The hybrid feature allows investment in a variety of securities.

Not suitable for investors seeking short-term returns.

Repurchase is available.

Exit load is nil for a specific limit, and it becomes entirely zero after a year.

Who Should Invest in the HDFC Hybrid Debt Fund?

Anyone falling into the listed below parameters should consider investing in Hybrid Debt Fund:

  1. Investors Seeking Long-term Goals

    This is a long-term investment option, and hence, it is an ideal fund for any investor who wants to invest in mutual funds and aims at getting good returns in the long term. 

  2. Investors Who Want to Secure Future Financially 

    Every investor has some aim for investing. Therefore, people who want to invest a sum of money to multiply them over time, fulfil other requirements, or simply create financial backup can invest in this fund.

  3. Investors with Risk-taking Capacity

    It should be remembered that the fund has a high risk. Therefore, investors who understand this factor entirely and are ready to take the risk should invest in this fund. 

  4. Investors Wanting to Invest in Debt Securities

    As this is primarily a debt fund, any investors who want to invest in debt funds or other money market securities should invest in this fund.

Wrapping it Up

To sum it all, HDFC Hybrid Debt Fund is an excellent plan for those looking for long-term returns and regular income. Though it has a high risk, there is an assurance that the trusted fund house will manage it well. With all the strategies paying out well, the future of the fund looks promising too. Moreover, the experts at HDFC MF are working day and night to design and offer convenient plans to their customers to make investment easy for them.


*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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