What is a Hybrid Fund?
Hybrid funds have a blend of equity and debt investments. Each hybrid fund has a different combination of equity and debt based on the fund's investment objectives.
Hybrid funds are classified based on asset allocation.
| Classification | Details |
|---|---|
| Conservative Hybrid Funds | Invests 75-90% of assets in debt instruments, and the rest in equity and equity-related instruments. |
| Balanced Hybrid Funds | Invests at least 40% each in equity and debt instruments. Invests atleast: * 65% in equity and equity-related instruments * 10% in debt instruments They make use of arbitraging opportunities in the cash and derivatives segments. |
| Aggressive Hybrid Funds | Invests 65-80% in equity and equity-related instruments, and the rest in debt instruments. |
| Dynamic Asset Allocation or Balanced Advantage Funds | Invests in both equity and debt based on the fund investment model and prevailing market conditions. |
| Multi-Asset Allocation Funds | Invests at least 10% each in at least 3 asset classes, as per market conditions. |
| Arbitrage Funds | Invests at least 65% in equity and equity-related instruments, and the rest in debt instruments. They make use of arbitraging opportunities in the cash and derivatives segments. |
| Equity Savings Funds | Invests atleast: * 65% in equity and equity-related instruments * 10% in debt instruments They make use of arbitraging opportunities in the cash and derivatives segments. |
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