8.22Hybrid mutual funds
1What is it?
Hybrid funds mix equity and debt (and sometimes gold) in one fund.
2Why does it exist?
One-fund diversification: some growth, some stability. Types include aggressive hybrid (65–80% equity), conservative hybrid (10–25% equity) and balanced advantage (dynamic).
3Diagram
| Invests in | Suits | Risk | Suggested horizon |
|---|---|---|---|
| Equity + debt mix | Moderate investors | Moderate | 3+ years |
4Quick revision
- Hybrid funds mix equity and debt (and sometimes gold) in one fund.
- Risk: Moderate.
- Horizon: 3+ years.
5Knowledge check
Q1. What does a hybrid fund hold?Show answer
Both equity and debt.
Q2. Aggressive hybrid equity range?Show answer
About 65–80%.
Q3. What is a balanced advantage fund?Show answer
A fund that changes its equity/debt mix dynamically.
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