Best Hybrid Funds

Top Hybrid Mutual Funds in India

Below is the list of the best hybrid funds:

1. ICICI Prudential Retirement Fund - Hybrid Aggressive Plan Direct - Growth

    One of the largest in its category, it dynamically manages a portfolio of equity, debt, and derivatives, often using gold and REITs for extra stability.

   Parameters	Details
   Fund Name	ICICI Prudential Retirement Fund - Hybrid Aggressive Plan Direct - Growth
   NAV	₹ 30.08 (as on 24th February, 2026)
   AUM	₹902.14 Crs
   Expense Ratio	0.76%
   Return 5 Years	22.14%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	27th February, 2019
   Asset Allocation	Equity: 82.3%, Debt: 12.59%, Others: 4.24%
   Top Sectors	Consumer Discretionary Industrials Diversified Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	Repo Interglobe Aviation Ltd Mahindra & Mahindra Ltd Multi Commodity Exchange Of India Ltd Usha Martin Ltd Mphasis Ltd Tata Motors Ltd VEDANTA LIMITED SR I 9.31 NCD 03DC27 FVRS1LAC Info Edge (India) Ltd Bharti Hexacom Ltd.
   Fund Managers	Darshil Dedhia Lalit Kumar Sharmila D'Silva Rohit Lakhotia
   Fund Type	Open-ended

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2. Quant Multi Asset Allocation Fund Regular - Growth

   This fund is known for its "VLRT" framework, which uses a high-turnover, momentum-based strategy to aggressively shift between stocks, debt, and gold based on market data.

   Parameters	Details
   Fund Name	Quant Multi Asset Allocation Fund Regular-Growth
   NAV	₹ 163.27 (as on 24th February, 2026)
   AUM	₹3,666.25 Crs
   Expense Ratio	1.86%
   Return 5 Years	26.47%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at high risk
   Launch Date	21st March, 2001
   Asset Allocation	Equity: 55.43%, Debt: 20.04%, Others: 14.51%, Commodities: 9.38%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Real Estate
   Top Holdings	Repo Nippon India Silver ETF - Growth Net Current Assets Others Fixed Deposits Nippon India ETF Gold BeES IDCW HDFC Bank Ltd ICICI Bank Ltd State Bank of India Reliance Industries Ltd. 30-DEC-25 Reliance Industries Ltd. 25-NOV-25
   Fund Managers	Sandeep Tandon Sanjeev Sharma Ankit A Pande Sameer Kate Varun Pattani Ayusha Kumbhat Yug Tibrewal
   Fund Type	Open-ended

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3. Nippon India Multi Asset Allocation Fund Regular - Growth

   A more traditional multi-asset fund that seeks to reduce volatility by spreading investments across domestic stocks, international stocks, debt, and commodities.

   Parameters	Details
   Fund Name	Nippon India Multi Asset Allocation Fund Regular - Growth
   NAV	₹ 24.78 (as on 24th February, 2026)
   AUM	₹6,649.41 Crs
   Expense Ratio	1.44%
   Return 5 Years	18.13%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	28th August, 2020
   Asset Allocation	Equity: 59.53%, Debt: 17.55%, Others: 4.46%, Commodities: 18.46%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	Nippon India ETF Gold BeES IDCW IShares MSCI World ETF Repo Nippon India Silver ETF - Growth ICICI Bank Ltd HDFC Bank Ltd Reliance Industries Ltd State Bank of India Infosys Ltd GOLD MINI (100 GRAMS) COMMODITY JUNE 2020 FUTURE
   Fund Managers	Vikram Dhawan Ashutosh Bhargava Kinjal Desai Sushil Budhia
   Fund Type	Open-ended

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4. UTI Multi Asset Allocation Fund Regular Plan - Growth

   Focuses on steady growth by maintaining a balanced mix of equity (usually 65-80%), fixed income, and gold to cushion against market dips.

   Parameters	Details
   Fund Name	UTI Multi Asset Allocation Fund Regular Plan -Growth
   NAV	₹ 79.65 (as on 24th February, 2026)
   AUM	₹5,902.09 Crs
   Expense Ratio	1.73%
   Return 5 Years	15.84%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	19th November, 2008
   Asset Allocation	Equity: 63.69%, Debt: 10.88%, Others: 6.28%, Commodities: 14.59%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Technology Healthcare Materials
   Top Holdings	UTI Gold Exchange Traded Fund Cash Margin Net Current Assets ICICI Bank Ltd Bharti Airtel Ltd ITC Ltd State Bank of India Infosys Ltd HDFC Bank Ltd Asian Paints Ltd
   Fund Managers	Jaydeep Bhowal Sharwan Kumar Goyal
   Fund Type	Open-ended

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5. SBI Multi Asset Allocation Fund Direct - Growth

   Uses a flexible approach to shift between equity, debt, and gold/silver, aiming for long-term capital appreciation with lower risk than a pure equity fund.

   Parameters	Details
   Fund Name	SBI Multi Asset Allocation Fund Direct-Growth
   NAV	₹ 74.83 (as on 25th February, 2026)
   AUM	₹9,440.30 Crs
   Expense Ratio	0.58%
   Return 5 Years	16.35%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 41.64%, Debt: 32.01%, Others: 11.92%, Commodities: 9.42%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Real Estate Technology
   Top Holdings	Repo SBI Silver ETF-Growth Brookfield India Real Estate Trust REIT GOVERNMENT OF INDIA 35943 GOI 05MY35 6.33 FV RS 100 SBI ETF Gold GOVERNMENT OF INDIA 36185 GOI 07JL40 6.68 FV RS 100 Nippon India Silver ETF - Growth HDFC Bank Ltd Reliance Industries Ltd BHARTI TELECOM LIMITED SR XXI 8.75 NCD 05NV29 FVRS1LAC
   Fund Managers	Vandna Soni Dinesh Balachandran Mansi Sajeja Pradeep Kesavan
   Fund Type	Open-ended

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6. HDFC Balanced Advantage Fund Regular - Growth

   This fund uses a "buy and hold" philosophy but dynamically adjusts its equity-debt mix based on market valuations to provide a smoother investment experience.

   Parameters	Details
   Fund Name	HDFC Balanced Advantage Fund Regular-Growth
   NAV	₹ 529.93 (as on 24th February, 2026)
   AUM	₹101,772.60 Crs
   Expense Ratio	1.33%
   Return 5 Years	24.17%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	11th September, 2000
   Asset Allocation	Equity: 67.93%, Debt: 26.08%, Others: 4.41%
   Top Sectors	Real Estate Technology Consumer Discretionary Industrials Consumer Staples Diversified Energy & Utilities Financial Healthcare Materials
   Top Holdings	HDFC Bank Ltd Cash Margin ICICI Bank Ltd Reliance Industries Ltd State Bank of India Bharti Airtel Ltd Repo Reverse Repo Infosys Ltd Axis Bank Ltd
   Fund Managers	Anil Bamboli Gopal Agrawal Arun Agarwal Srinivasan Ramamurthy Dhruv Muchhal Nandita Menezes
   Fund Type	Open-ended

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7. JM Aggressive Hybrid Fund Direct - Growth

   Focuses on capital appreciation by investing heavily in a diversified equity portfolio, while using debt instruments to manage liquidity and reduce downside.

   Parameters	Details
   Fund Name	JM Aggressive Hybrid Fund Direct-Growth
   NAV	₹ 135.16 (as on 24th February, 2026)
   AUM	₹840.84 Crs
   Expense Ratio	0.61%
   Return 5 Years	22.5%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹1,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 72.79%, Debt: 25.26%, Others: 1.95%
   Top Sectors	Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	Ujjivan Small Finance Bank Ltd Multi Commodity Exchange Of India Ltd HDFC Bank Ltd Bharti Airtel Ltd Larsen & Toubro Ltd Bajaj Finance Ltd Coforge Ltd KOTAK MAHINDRA BANK LIMITED CD 18FEB26 Waaree Energies Ltd. Tech Mahindra Ltd
   Fund Managers	Ruchi Fozdar Satish Ramanathan Asit Bhandarkar Deepak Gupta
   Fund Type	Open-ended

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8. ICICI Prudential Multi Asset Fund Direct - Growth

   One of the largest in its category, it dynamically manages a portfolio of equity, debt, and derivatives, often using gold and REITs for extra stability.

   Parameters	Details
   Fund Name	ICICI Prudential Multi Asset Fund Direct-Growth
   NAV	₹ 913.13 (as on 24th February, 2026)
   AUM	₹63,001.13 Crs
   Expense Ratio	0.67%
   Return 5 Years	25.84%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
   Risk Level	Principal at very high risk
   Launch Date	NA
   Asset Allocation	Equity: 63.04%, Debt: 12.14%, Others: 14.31%, Commodities: 9.04%
   Top Sectors	Real Estate Consumer Discretionary Industrials Consumer Staples Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	Cash Margin ICICI Prudential Gold Exchange Traded Fund IDCW Repo Reverse Repo ICICI Bank Ltd GOLD MINI (100 GRAMS) COMMODITY JUNE 2020 FUTURE Reliance Industries Ltd HDFC Bank Ltd ICICI Prudential Silver ETF - Growth Axis Bank Ltd
   Fund Managers	Sankaran Naren Ihab Dalwai Gaurav Chikane Manish Banthia Akhil Kakkar Masoomi Jhurmarvala Sri Sharma Sharmila D'Silva
   Fund Type	Open-ended

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9. Edelweiss Aggressive Hybrid Fund Regular - Growth

   A balanced approach that seeks growth through equity while using a high-quality debt portfolio to provide relative stability during market corrections.

   Parameters	Details
   Fund Name	Edelweiss Aggressive Hybrid Fund Regular - Growth
   NAV	₹ 64.55 (as on 23rd February, 2026)
   AUM	₹2,994.48 Crs
   Expense Ratio	1.9%
   Return 5 Years	19.5%
   Minimum Investment	SIP ₹1000 & Lumpsum ₹100
   Risk Level	Principal at very high risk
   Launch Date	12th August, 2009
   Asset Allocation	Equity: 77.53%, Debt: 23.57%, Others: -1.1%
   Top Sectors	Industrials Consumer Discretionary Consumer Staples Energy & Utilities Financial Healthcare Materials Technology
   Top Holdings	Others CBLO Net Receivables NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT SR 23A 7.40 BD 30JN26 FVRS10LAC ICICI Bank Ltd Edelweiss Liquid Direct-Growth HDFC Bank Ltd NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT SR 25G 7.48 BD 15SP28 FVRS1LAC State Bank of India Bharti Airtel Ltd Reliance Industries Ltd
   Fund Managers	Pranavi Kulkarni Bhavesh Jain Bharat Lahoti Rahul Dedhia
   Fund Type	Open-ended

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10. ICICI Prudential Equity & Debt Fund Direct - Growth

    A veteran aggressive hybrid fund that historically maintains a large equity portion (around 70%) and uses a value-oriented approach to pick stocks.

    Parameters	Details
    Fund Name	ICICI Prudential Equity & Debt Fund Direct-Growth
    NAV	₹ 454.97 (as on 24th February, 2026)
    AUM	₹44,605.00 Crs
    Expense Ratio	0.95%
    Return 5 Years	26.69%
    Minimum Investment	SIP ₹1000 & Lumpsum ₹5,000
    Risk Level	Principal at very high risk
    Launch Date	NA
    Asset Allocation	Equity: 74.52%, Debt: 19.87%, Others: 3.4%
    Top Sectors	Materials Real Estate Technology Consumer Discretionary Industrials Consumer Staples Diversified Energy & Utilities Financial Healthcare
    Top Holdings	ICICI Bank Ltd Reliance Industries Ltd NTPC Ltd Sun Pharmaceutical Industries Ltd Maruti Suzuki India Ltd HDFC Bank Ltd Cash Margin Axis Bank Ltd Infosys Ltd TVS Motor Company Ltd
    Fund Managers	Sankaran Naren Manish Banthia Mittul Kalawadia Akhil Kakkar Sri Sharma Sharmila D'Silva Nitya Mishra
    Fund Type	Open-ended

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What are Hybrid Funds?

Hybrid funds are mutual funds that invest in a combination of equity (stocks) and debt (bonds, fixed-income securities) to achieve the investment objective of the scheme. Each hybrid fund features a unique allocation between equity and debt, catering to different investor profiles and financial goals. This blend allows investors to benefit from the growth potential of equities while enjoying the stability offered by debt instruments.

Features of Hybrid Mutual Funds

1. The Multi-Tool Portfolio

   Think of a hybrid fund as a financial smoothie. Instead of buying stocks, bonds, and gold separately, you get a professionally blended mix in one package. It simplifies your life by giving you instant diversification.

2. Automatic "Buy Low, Sell High"

   This is the secret sauce. When the stock market gets too expensive, the fund manager automatically shifts money into safer debt. When stocks get cheap, they move money back in. They do the hard work of timing the market so you don’t have to.

3. Built-In Volatility Guard

   Pure equity funds can be a roller coaster. Hybrid funds use debt (bonds) as a safety net. This debt component acts as a shock absorber, ensuring that when the market crashes, your portfolio doesn't fall nearly as hard.

4. A Style for Every Goal

   You can pick a fund that matches your "sleep-at-night" level:

   • Safety First: (Conservative Hybrids)
   • Middle Path: (Balanced Advantage/Multi-Asset)
   • Growth Focused: (Aggressive Hybrids)

5. Patience Pays Off

   While these funds are safer than pure stocks, they still need time to grow. They work best when you leave them alone for 3 to 5 years, allowing the "power of compounding" and the rebalancing strategy to do their magic.

Types of Hybrid Funds

Below are the different types of hybrid mutual funds available:

1. Aggressive Hybrid Funds

   These invest 65% to 80% in stocks (equities) and the rest in bonds (debt). The investors who want high growth but want a small "safety net" to reduce the sting of market crashes. Because they keep >65% in stocks, they are taxed like Equity funds (lower tax rates for long-term gains).

2. Conservative Hybrid Funds (Formerly MIPs)

   The opposite of aggressive funds. They invest 75% to 90% in debt and only 10% to 25% in stocks. Conservative investors or retirees. They provide much better stability than stocks while giving a small "equity boost" to beat inflation.

   Note: SEBI renamed "Monthly Income Plans" to this category to avoid misleading people into thinking "monthly income" is guaranteed.

3. Balanced Hybrid Funds

   A strict 40% to 60% split between equity and debt. Fund houses can choose to offer either an Aggressive Hybrid or a Balanced Hybrid, but not both. Most choose Aggressive because of the better tax status.

4. Balanced Advantage / Dynamic Asset Allocation (BAF)

   These are "smart" funds. They don't have a fixed limit. They can go from 0% to 100% equity based on market conditions. Investors who want a professional to decide when to "get out" of the market (sell high) and when to "get in" (buy low).

5. Multi-Asset Allocation Funds

   These must invest in at least three asset classes (e.g., Stocks, Bonds, and Gold) with a minimum of 10% in each. True diversification. Gold often goes up when stocks go down, providing a unique layer of protection.

6. Arbitrage Funds

   They don't bet on the market going up. Instead, they buy a stock in the "Cash Market" and sell it in the "Futures Market" to pocket the tiny price difference. Parked cash (like a savings account). They are very low risk but are taxed like Equity funds, which is a huge advantage for high-tax-bracket investors.

7. Equity Savings Funds

   A mix of three things: pure equity, debt, and arbitrage. Moderate investors who want a "lite" version of an aggressive fund with lower volatility.

How Much Should You Invest in a Hybrid Fund?

The amount you should invest in hybrid funds depends on your financial goals, investment horizon, and risk tolerance. Hybrid funds are ideal for investors seeking moderate risk and balanced returns. They are especially suitable for new investors who want to experience equity markets with the safety net of debt allocation. Using a SIP calculator can help you plan regular investments and estimate future corpus based on your investment options.

Tax Rules of Hybrid Mutual Funds

Taxation of hybrid mutual funds depends on the proportion of equity and debt in the fund:

1. Equity-Oriented Hybrid Funds

   (Any fund with >65% in Indian equities, like Aggressive Hybrids or Arbitrage Funds)

   • Short-Term Capital Gains (STCG): If you sell within 1 year, the tax is 20% (it was 15% previously).
   • Long-Term Capital Gains (LTCG): If you sell after 1 year, the tax is 12.5% (it was 10% previously).

   Note: You don't pay any tax on the first ₹1.25 lakh of your total equity gains in a financial year.

2. Debt-Oriented Hybrid Funds

   (Any fund with <35% in equities, like Conservative Hybrids)

   • The Rule: Since April 1, 2023, these funds no longer have "Long-Term" benefits if purchased after that date.
   • Taxation: All gains (whether you hold for 1 month or 10 years) are added to your total income and taxed at your applicable Income Tax Slab rate.
   • Indexation: This benefit has been completely removed for all debt funds bought after April 1, 2023.

   This makes understanding the fund's asset allocation crucial for tax planning, especially when comparing it with other investment options like ULIP plans.

Conclusion

Hybrid funds offer a smart balance of growth and stability, making them suitable for diverse investor needs. By blending equity and debt, they help manage risk while aiming for attractive returns, making them a valuable addition to any investment portfolio. Some of the best hybrid funds available in the market are Quant Multi Asset Allocation, Nippon India Multi Asset Allocation, UTI Multi Asset Allocation, SBI Multi Asset Allocation, HDFC Balanced Advantage, JM Aggressive Hybrid, Edelweiss Aggressive Hybrid and many more.