HDFC Hybrid Mutual Fund

HDFC Hybrid Mutual Fund aims to provide investors with capital appreciation. The fund managers invest 75% to 90% of the funds towards debt investment instruments and money market instruments. The hybrid mutual fund creates a perfect balance between the associated risks, returns, and income stability. Further classified into debt and equity hybrid funds, the fund scheme boosts the investment and safeguards it against market fluctuation. Choose the best HDFC Hybrid Mutual Funds that offer higher return potential per your investment objective.

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488.37Apr 19, 2024
20%
₹73,348
43.30Apr 19, 2024
19%
₹73,348
455.29Apr 19, 2024
19%
₹73,348
455.29Apr 19, 2024
19%
₹73,348
37.86Apr 19, 2024
19%
₹73,348
37.86Apr 19, 2024
19%
₹73,348
111.71Apr 19, 2024
16%
₹22,234
68.33Apr 19, 2024
15%
₹2,642
19.37Apr 19, 2024
15%
₹2,642
103.89Apr 19, 2024
15%
₹22,234
103.89Apr 19, 2024
15%
₹22,234
17.89Apr 19, 2024
14%
₹22,234
16.12Apr 19, 2024
14%
₹2,642
16.12Apr 19, 2024
14%
₹2,642
62.11Apr 19, 2024
14%
₹2,642
15.86Apr 19, 2024
14%
₹22,234
15.86Apr 19, 2024
14%
₹22,234
66.37Apr 19, 2024
11%
₹3,994
78.29Apr 19, 2024
11%
₹3,054
14.87Apr 19, 2024
11%
₹3,994

Investment Objective of HDFC Hybrid Mutual Fund

The investment objective of the HDFC hybrid mutual fund is to offer investors long-term capital growth along with liquidity. To unlock such rewards, staying invested for at least 18 months or more is recommended. HDFC MF hybrid fund's investment objective is to invest funds across a diverse portfolio enlisting debt instruments, equity-related assets, and a blend of both. It falls in the category of open-ended schemes and creates a balance between associated risk and diversification of the portfolio.

Risks Involved in HDFC Hybrid Mutual Fund

The HDFC Hybrid Mutual Fund schemes, i.e. equity as well as debt, produce consistent returns. Additionally, these schemes offer long-term capital growth. However, it is unwise to think these fund schemes don't carry any risks. Primarily two types of risk are associated with HDFC hybrid mutual funds. These are the surge or downfall of interest rates and stock values. The risk factors drive the overall net asset value of the mutual funds. Additionally, the associated risk can be moderate or aggressive based on the allocation of the assets. So, investors must consider risk tolerance capabilities to choose the best HDFC hybrid mutual fund schemes.

Return Potential of HDFC Hybrid Mutual Fund Schemes

One of the major Indian banks, HDFC Bank, offers an array of debt mutual funds to investors to provide them with opportunities of earning substantial profits. The returns are rooted in the extent of risk an investor is ready to take. The fund house has outperformed in the past decade, providing higher investment returns. Additionally, staying invested for at least 18 months or more is recommended to unlock long-term capital growth. The key fund managers have set the bar high by producing impressive returns. Bonds and loans tend to provide higher returns based on the associated credit risks.

Who Should Invest in HDFC Hybrid Mutual Fund? 

HDFC Hybrid Mutual Funds are significant investment instruments for cautious investors seeking balanced risks and rewards. HDFC hybrid mutual funds provide great exposure to investors, specifically towards debt securities, making it prominent for investors who look forward to portfolio diversification. Additionally, these funds are ideal for investors who want to stay invested over the mid to long-term horizon. Regarding the investor category, hybrid mutual funds are reliable for new and experienced investors.

Things To Consider Before Investing in HDFC Hybrid Mutual Fund

An investor investing in the HDFC Hybrid Mutual Fund schemes must consider the following pointers:

Risk Factors

HDFC Hybrid Mutual Fund schemes carry a subtle amount of risk in the equity market. Additionally, there is a risk exposure of 65% because of investments towards equities and equity-related securities. However, when you invest in a combination of equity and debt, the associated risk factor is somewhat lower than in equity-oriented funds.

Strategy

The investment strategy is key in determining the best HDFc hybrid mutual fund to invest in. These investments provide investors with long-term wealth and a mixed portfolio. What strategy the fund house relies on to generate the committed returns will help you understand whether you should invest in mutual funds.

Return

The performance of the underlying assets and securities creates a huge impact on the HDFC hybrid mutual fund NAV (Net Asset Value). Returns are hinged on market fluctuations, leading to the non-declaration of dividends in case of market downturns. 

Tax on HDFC Hybrid Mutual Fund

The tax on HDFC hybrid mutual funds is based on how much the scheme is exposed to equity and debt. The tax treatment is comparable to an equity fund if the scheme has more than 65% equity exposure. If not, it will function similarly to debt fund taxation.

  • Short-term Capital Gains: An investor will have a 15% tax rate irrespective of the slab rate if the holdings are less than 12 months in the case of equity-oriented funds. As for the debt-oriented funds, the tax rate will be according to the slab rate if the holdings are less than 36 months. 
  • Long-term Capital Gains: Capital gains of up to INR 1 lakh are exempted from paying tax. An investor will have a 10% tax rate on the amount exceeding INR 1 lakh if the holdings are 12 months or more, in the case of equity-oriented funds. As for the debt-oriented funds, the tax rate will be 20% with indexation if the holdings are 36 months or more.

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Frequently Asked Questions (FAQs)

How is HDFC Hybrid Mutual Fund doing?

HDFC hybrid mutual fund is doing fairly well and provides stable returns when invested for more than 18 months.

Is Axis Hybrid Mutual Fund safe?

Yes, HDFC hybrid mutual fund is safe as you have numerous fund schemes.

Is it good to invest in equity funds?

Yes, it is good to invest in equity funds if you seek long-term capital growth.

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