Hybrid funds try to enhance the return by allocating funds in equity but reduce the portfolio volatility by balancing allocation in debt.
This depends on type of hybrid funds. Balance funds allocate minmum 65% to equity and are most aggressive hybrid funds whereas Monthly Income Funds allocation small portion to equity and hence are less volatile.
Entry Load: Nil
Exit Load : Typical Hyrbid funds have 1% exit load if redeemed within 1 year.
Hybrid funds invest in mix of debt and equity instruments.