Investors are mainly of two types, first, the risk takers and second, the risk-averse investors. Risk-takers invest in mutual funds for a highly volatile stock. The risk-averse investor, on the other hand, invests in debt funds since, in contrast to equity, debt funds provide predictable returns.
Other than these two, there is yet another type of investor who focus on both. These investors favour using hybrid funds to obtain the best of both equity and debt.
Hybrid Mutual Funds
Hybrid mutual funds are a kind of Mutual fund that makes investments across multiple asset classes. They typically consist of a mix of equity and debt assets, though occasionally they may also contain gold or even real estate. For investors who want to diversify their assets, exposure to risk, and rate of return, these funds are ideal for investments. The three main tenets of hybrid funds are diversification, correlation, and asset allocation.
How Hybrid Mutual Funds are ideal for both investors?
Whether it is Equity or Debt mutual funds, both have their own pros and cons. However, this is not applicable in the case of Hybrid Funds. Depending on the investment objectives of the investors, hybrid funds combine both types of funds and seek to produce higher returns while posing a reduced risk. Investors can invest in hybrid mutual funds if they want high returns at little risk.
Top performing Hybrid Funds
If you are looking for a top performing Hybrid Fund for investment purpose, this list of funds might help you. These 10 Hybrid Funds gave the highest returns on investments in the category in 2021. Here are the top 10 performing Hybrid funds in 2021 with the highest returns:
| S.No. | Funds | Category | 2021 Returns | Risk level | Rated |
|---|---|---|---|---|---|
| 1 | Quant Multi Asset Fund | Multi Asset Allocation | 59.97% | Very High | 5 Star |
| 2 | Bank of India Mid & Small Cap Equity & Debt Fund | Aggressive Hybrid | 55.77% | Very High | 4 Star |
| 3 | Quant Absolute Fund | Aggressive Hybrid | 44.59% | Very High | 5 Star |
| 4 | ICICI Prudential Equity & Debt Fund | Aggressive Hybrid | 42.40% | Very High | 5 Star |
| 5 | ICICI Prudential Multi Asset Fund | Multi Asset Allocation | 35.54% | Very High | 4 Star |
| 6 | Mahindra Manulife Hybrid Equity Nivesh Yojana | Aggressive Hybrid | 33.09% | Very High | 5 Star |
| 7 | Kotak Equity Hybrid Fund | Aggressive Hybrid | 30.66% | Very High | 4 Star |
| 8 | Edelweiss Aggressive Hybrid Fund | Aggressive Hybrid | 29.45% | Very High | 4 Star |
| 9 | ICICI Prudential Retirement Fund - Hybrid Aggressive Plan | Aggressive Hybrid | 28.32% | Very High | 4 Star |
| 10 | Axis Children's Gift | Aggressive Hybrid | 28.04% | Very High | 4 Star |
Source- Valueresearchonline.com
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