Sovereign Gold Bonds
Government-issued bonds linked to the price of gold that also pay a fixed annual interest — a way to hold gold without storing it.
Hybrid Mutual Funds
One fund that combines equity and debt — and sometimes gold — to balance growth potential with stability.
- Risk level
- High risk
- Minimum investment
- From ₹500 (varies by scheme)
What are hybrid mutual funds?
Hybrid funds invest in more than one asset class within a single scheme — usually equity and debt, and sometimes gold or other assets. The idea is simple: different assets tend to behave differently at different times, so combining them can reduce the swings of the overall portfolio.
Main categories
- Conservative hybrid funds — mostly debt (75–90%), with a small equity portion.
- Aggressive hybrid funds — mostly equity (65–80%), with the rest in debt.
- Balanced advantage / dynamic asset allocation funds — shift between equity and debt as market conditions change.
- Multi asset allocation funds — invest in at least three asset classes, with a minimum of 10% in each.
- Equity savings funds — combine equity, arbitrage and debt to lower volatility.
- Arbitrage funds — seek to earn from price differences between the cash and futures markets.
Things to keep in mind
“Hybrid” covers a very wide range. A conservative hybrid fund and an aggressive hybrid fund behave very differently, so look at the actual equity allocation, not just the label. Returns are not assured, and a hybrid fund can still lose value when markets fall.
How GTDIS helps
We explain how each category works, share scheme information and research, and help you see how a hybrid fund would fit alongside your existing investments. Transactions can be done online or with doorstep assistance, and your portfolio’s asset allocation is visible in your investor login.
Hybrid Mutual Funds: common questions
Are hybrid funds safer than equity funds?
The debt portion can cushion falls, so hybrid funds have generally been less volatile than pure equity funds. They still carry market risk, and the level depends on how much equity the fund holds.
What is a balanced advantage fund?
A balanced advantage (dynamic asset allocation) fund changes its mix of equity and debt based on a model or the fund manager's view of market valuations, rather than keeping a fixed split.
How are hybrid funds taxed?
It depends on the equity share. Funds holding 65% or more in Indian equities are taxed like equity funds; others follow different rules. Please confirm the current rules with your tax adviser.
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Want to know more about Hybrid Mutual Funds?
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