Balanced hybrid mutual fund

Mon, 18 May 2026 00:00:00 +0000

A balanced hybrid mutual fund is a SEBI-categorised hybrid mutual fund scheme that maintains 40-60 per cent allocation to equity and equity-related instruments, with 40-60 per cent allocation to debt and money-market instruments. The category sits structurally between aggressive hybrid funds (65-80 per cent equity) and conservative hybrid funds (10-25 per cent equity), targeting investors who want balanced equity-debt exposure with moderate risk-return characteristics.

The category was formalised under the SEBI October 2017 categorisation framework and is one of the seven hybrid scheme sub-categories. For Indian retail investors seeking a single-scheme approach to balanced allocation, balanced hybrid funds offer simpler portfolio management than holding separate equity and debt schemes, with the AMC’s investment team handling the rebalancing.

Balanced advantage fund vs aggressive hybrid fund

Tue, 12 May 2026 00:00:00 +0000

Balanced Advantage Funds (BAFs) and Aggressive Hybrid Funds are two distinct hybrid mutual fund categories defined by SEBI ’s October 2017 categorisation circular (SEBI/HO/IMD/DF3/CIR/P/2017/114). Both invest in a combination of equity and debt instruments, but differ in how the equity allocation is defined and managed.

SEBI definitions

Balanced advantage fund (dynamic asset allocation)

SEBI defines this category as: “investment in equity/debt that is managed dynamically.” No minimum or maximum equity/debt allocation percentage is prescribed by SEBI. AMCs define their own internal allocation models (often based on valuation metrics such as Price-to-Earnings ratio, Price-to-Book ratio, or yield spread indicators) and disclose this model in the scheme’s offer document.

Hybrid on WebNotes

Balanced hybrid mutual fund

Balanced advantage fund vs aggressive hybrid fund

SEBI definitions

Balanced advantage fund (dynamic asset allocation)