
Hybrid Mutual Funds
3 Year Average Returns
Funds on Dhan
206
Hybrid Funds are a type of Mutual Fund that invest in a mix of asset classes such as equity, debt, gold, etc. These Funds aim to provide a balanced portfolio that can offer both growth and stability. While these are the best Hybrid Mutual Funds to invest in, you must know these 3 things before you start investing.
- Goal: Hybrid Funds combine multiple asset classes such as equity, debt, gold, and others in one portfolio, offering a balance between growth and income.
- Investment Horizon: Ideal for investors looking for a mix of growth and income with an investment horizon of 3-5 years.
- Risk: They carry moderate risk, depending on their equity-debt ratio, balancing market volatility and steady income.
Best Hybrid Funds to Invest in 2026
Note: 3Y & 5Y returns are annualised. Rest everything is absolute.
Scheme | AUM (in Cr.) | Fund Age | 1W | 1M | 3M | 6M | 1Y | 3Y | 5Y |
|---|---|---|---|---|---|---|---|---|---|
Compare | ₹ 6,608 | 13 Yrs | 0.35% | -0.01% | -3.44% | 1.19% | 8.85% | 21.08% | 18.00% |
Compare | ₹ 729 | 11 Yrs | -3.92% | -8.92% | -8.45% | -10.20% | 12.97% | 20.56% | 23.57% |
Compare | ₹ 729 | 11 Yrs | -3.92% | -8.92% | -8.45% | -10.20% | 12.97% | 20.56% | 23.57% |
Compare | ₹ 18,044 | 6 Yrs | 0.99% | -0.91% | -4.25% | -0.91% | 3.93% | 17.43% | 13.88% |
Compare | ₹ 10,820 | 3 Yrs | 1.69% | 0.24% | -4.06% | -1.00% | 5.44% | 17.30% | 0.00% |
Compare | ₹ 7,478 | 3 Yrs | 2.62% | 1.30% | -2.54% | 1.23% | 6.92% | 16.04% | 0.00% |
Compare | ₹ 9,111 | 3 Yrs | 0.80% | -0.27% | -1.13% | 2.65% | 6.82% | 16.01% | 0.00% |
Compare | ₹ 15,236 | 3 Yrs | 1.46% | -2.63% | -5.28% | -3.92% | 4.88% | 15.99% | 0.00% |
Compare | ₹ 2,196 | 10 Yrs | 2.14% | -1.28% | -0.94% | 4.49% | 10.30% | 15.82% | 14.08% |
Compare | ₹ 2,663 | 9 Yrs | 3.99% | 3.65% | -0.85% | 5.48% | 5.25% | 15.32% | 11.45% |
Compare | ₹ 1,398 | 3 Yrs | 3.69% | 2.38% | -2.49% | -0.90% | 3.31% | 14.40% | 0.00% |
Compare | ₹ 6,634 | 13 Yrs | 3.37% | 2.11% | -3.20% | 0.15% | 0.84% | 14.34% | 12.82% |
Compare | ₹ 2,108 | 13 Yrs | 4.37% | 2.63% | -3.17% | 3.24% | 6.56% | 14.07% | 12.19% |
Compare | ₹ 2,616 | 13 Yrs | 2.18% | 0.71% | -3.07% | 1.24% | 3.48% | 13.85% | 8.40% |
Compare | ₹ 21,124 | 13 Yrs | 1.03% | -1.13% | -3.90% | -2.09% | 2.79% | 13.79% | 12.50% |
Compare | ₹ 5,652 | 13 Yrs | 2.90% | 1.26% | -0.73% | 5.24% | 3.47% | 13.54% | 10.33% |
Compare | ₹ 3,875 | 13 Yrs | 3.40% | 3.34% | -1.64% | 2.32% | 1.18% | 13.45% | 13.02% |
Compare | ₹ 810 | 3 Yrs | 3.64% | 1.60% | -2.42% | 0.23% | -2.71% | 13.33% | 0.00% |
Compare | ₹ 84,108 | 13 Yrs | 2.26% | 0.55% | -4.88% | -1.86% | -1.43% | 13.31% | 14.10% |
Compare | ₹ 50,706 | 13 Yrs | 3.83% | 2.74% | -2.48% | 0.06% | -0.89% | 13.23% | 13.29% |
Compare | ₹ 9,040 | 12 Yrs | 3.92% | 2.14% | -2.85% | 1.40% | 1.01% | 13.14% | 11.33% |
Compare | ₹ 1,558 | 13 Yrs | 1.40% | 1.67% | -0.08% | 3.87% | 7.87% | 13.08% | 10.95% |
Compare | ₹ 115 | 8 Yrs | 3.10% | 2.07% | -0.82% | 7.60% | 7.34% | 12.89% | 10.90% |
Compare | ₹ 86,163 | 13 Yrs | 3.82% | 2.87% | -2.20% | 1.62% | 1.70% | 12.66% | 9.54% |
Compare | ₹ 654 | 12 Yrs | 4.27% | 2.93% | -1.34% | 4.40% | -1.34% | 12.57% | 12.60% |
Compare | ₹ 654 | 13 Yrs | 4.27% | 2.93% | -1.34% | 4.40% | -1.34% | 12.56% | 12.60% |
Compare | ₹ 5,162 | 7 Yrs | 3.80% | 3.21% | -2.00% | 1.87% | 2.51% | 12.38% | 10.61% |
Compare | ₹ 9,836 | 13 Yrs | 3.00% | 3.18% | -1.13% | 4.26% | 5.14% | 12.35% | 10.12% |
Compare | ₹ 5,000 | 6 Yrs | 1.76% | 0.18% | -5.02% | -1.28% | -0.52% | 12.25% | 11.23% |
Compare | ₹ 3,651 | 9 Yrs | 3.36% | 3.54% | -1.10% | 2.49% | 1.17% | 12.21% | 9.54% |
Compare | ₹ 9,239 | 11 Yrs | 3.49% | 3.40% | -1.05% | 1.99% | 1.83% | 12.05% | 9.59% |
Compare | ₹ 2,256 | 3 Yrs | 3.00% | 2.43% | -1.19% | 4.32% | 1.98% | 11.99% | 0.00% |
Compare | ₹ 5,782 | 13 Yrs | 3.40% | 2.71% | -1.59% | 0.69% | 0.85% | 11.96% | 10.77% |
Compare | ₹ 879 | 4 Yrs | 3.24% | 3.30% | -1.23% | 3.63% | 1.89% | 11.58% | 0.00% |
Compare | ₹ 10,831 | 13 Yrs | 3.45% | 4.00% | -1.99% | 2.24% | 0.31% | 11.55% | 9.23% |
Compare | ₹ 1,197 | 9 Yrs | 3.81% | 3.60% | -1.60% | 0.66% | 0.13% | 11.52% | 9.82% |
Compare | ₹ 2,798 | 7 Yrs | 3.57% | 1.53% | -4.49% | -1.24% | -4.90% | 11.51% | 10.64% |
Compare | ₹ 741 | 8 Yrs | 3.58% | 3.75% | -1.42% | 2.93% | -4.99% | 11.44% | 9.42% |
Compare | ₹ 561 | 13 Yrs | 2.78% | 0.19% | -0.12% | 4.16% | 0.79% | 11.44% | 8.39% |
Compare | ₹ 71,914 | 13 Yrs | 3.31% | 3.45% | -1.89% | 3.44% | 3.32% | 11.32% | 10.32% |
Compare | ₹ 1,02,534 | 13 Yrs | 3.71% | 3.07% | -2.35% | 0.35% | -1.99% | 11.29% | 13.40% |
Compare | ₹ 12,880 | 13 Yrs | 3.19% | 3.52% | -0.63% | 3.75% | 3.64% | 11.26% | 9.36% |
Compare | ₹ 1,704 | 12 Yrs | 1.50% | 1.08% | 1.01% | 4.59% | 6.67% | 11.24% | 9.52% |
Compare | ₹ 1,704 | - | 1.50% | 1.08% | 1.00% | 4.58% | 6.65% | 11.24% | 9.52% |
Compare | ₹ 3,704 | 12 Yrs | 3.25% | 2.97% | -0.65% | 2.81% | 2.95% | 11.12% | 8.80% |
Compare | ₹ 293 | 3 Yrs | 2.24% | 1.71% | -1.02% | 3.67% | 1.54% | 11.12% | 0.00% |
Compare | ₹ 727 | 5 Yrs | 3.30% | 2.71% | -1.69% | 3.35% | 1.49% | 11.04% | 8.64% |
Compare | ₹ 664 | 3 Yrs | 2.36% | 0.90% | -1.76% | 3.84% | 2.92% | 11.03% | 0.00% |
Compare | ₹ 140 | 3 Yrs | 3.13% | 2.39% | -2.27% | 0.19% | 3.24% | 10.93% | 0.00% |
Compare | ₹ 11,312 | 13 Yrs | 3.33% | 3.36% | -2.04% | 1.22% | -3.24% | 10.86% | 8.65% |
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Disclaimer: Mutual fund investments carry market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
About Hybrid Funds
- They invest across multiple asset classes, providing built-in diversification in a single fund.
- Different types of hybrid funds have different equity-debt ratios, catering to various risk appetites.
- They offer a balanced approach, reducing the overall portfolio volatility compared to pure equity funds.
- Professional fund managers handle the asset allocation and rebalancing, saving investors the effort.
- Built-in diversification across asset classes reduces risk compared to investing in a single asset class.
- Professional fund managers handle asset allocation decisions, optimizing the mix based on market conditions.
- They offer a middle ground between the high-return potential of equity and the stability of debt.
- Automatic rebalancing ensures your portfolio stays aligned with the intended risk profile.
- Suitable for first-time investors who want equity exposure but are wary of pure equity fund volatility.
- They are suitable if you want moderate risk with balanced returns – not as volatile as pure equity, not as conservative as pure debt.
- Ideal for medium-term goals (3-5 years) where you need growth but cannot afford high volatility.
- Different sub-categories offer different risk levels – aggressive hybrid funds lean towards equity, while conservative ones lean towards debt.
- Tax treatment depends on the equity allocation – funds with 65%+ equity allocation are taxed as equity funds.
- First-time investors who want exposure to equities but are uncomfortable with full equity volatility.
- Investors approaching retirement who want to gradually shift from aggressive to moderate risk.
- Those with medium-term goals (3-5 years) who want better returns than FDs but lower risk than pure equity.
- Busy professionals who prefer a single fund solution with automatic asset allocation.
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FAQs
Hybrid Funds combine investments in both stocks and bonds, offering a balanced approach. By diversifying across these asset classes, they aim to reduce the risk of volatility while still providing the opportunity for growth through equities and stability through debt investments.
These funds are typically invested in a mix of equity (stocks) and fixed-income securities (bonds, debentures, government securities). The proportion varies depending on the fund's strategy, with some funds leaning more towards equities for growth and others towards fixed income for stability.
Hybrid Funds can give profit through capital appreciation from their equity investments and interest income from their debt holdings. While they aim to offer a balanced return, the actual profit depends on market conditions, the fund's asset allocation, and the fund manager's strategy.
No, Hybrid Funds are not tax-free. The taxation of returns from these funds depends on their equity exposure. Funds with higher equity allocation are taxed as equity funds, while those with higher debt allocation follow the taxation rules applicable to debt funds.
Choosing the best Hybrid Fund involves considering your financial goals, risk tolerance, and the fund's performance history. Look at the fund's asset allocation, past returns, expense ratio, and the fund manager's experience.
Generally, Hybrid Funds do not have a lock-in period. You can enter and exit the investment as per your financial needs and market outlook.

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