Looking For Investment Options? Why Hybrid Mutual Funds Should Be On Your Portfolio

Investors are always on the lookout for ways to make big profits without risking too much. If you’re one of those investors, you might want to consider hybrid mutual funds. These funds have managed to turn a small investment of Rs 1 lakh into a whopping Rs 65 lakh in just 22 years, with minimal risk involved. That’s an impressive annual return of over 21 per cent. Hybrid funds offer a unique opportunity for ordinary people to invest in a variety of assets simultaneously, which helps to reduce the overall risk.

ICICI Prudential Mutual Fund has been a big name in the hybrid investment game for a long time. They’re known for being good at managing their investment mix. Their different funds are usually pretty good at making money for investors. Let’s look at their Aggressive Hybrid Fund scheme as an example. It puts about 65% of its money in stocks and the rest in debt. This option works well for folks who are okay with taking on a bit more risk with their money.

Balanced funds are doing well, boosting investors’ earnings. Let’s consider the ICICI Prudential Balanced Advantage Fund (BAF), which has shown impressive performance over its 17-year lifespan. In the last 3 years, it grew by 13.49% annually, and over 5 years, it averaged 12.83% yearly. This consistent growth is particularly beneficial during uncertain market times. For instance, if you invested Rs 1 lakh on December 30, 2006, by April 30, 2024, you’d have approximately Rs 6.5 lakh. That’s an average yearly return of 11.40%.

Investing in a multi-asset fund can make you wealthy. These funds include a mix of stocks, bonds, gold/silver, real estate investment trusts (REITs), infrastructure investment trusts (InvITs), and more, all in one place. The biggest and oldest fund in this category is the ICICI Prudential Multi-Asset Fund. Over the last 3 years, it grew by about 24.69% each year, and over 5 years, it averaged about 19.65% yearly. For example, if you invested Rs 1 lakh on October 31, 2002, by April 30, 2024, you’d have around Rs 65.42 lakh. That’s an average yearly return of 21.45%.

Equity savings funds are ideal for those seeking safety with decent returns. These funds invest in stocks but also employ derivatives to reduce risk. While they provide better returns compared to regular savings funds, they’re not as lucrative as pure stock investments. In the past 3 years, they’ve averaged an annual return of 8.27%, and over 5 years, it’s been 8.03%.