A hybrid mutual fund, also known as a balanced fund, is an investment vehicle that combines elements of both equity and debt securities in its portfolio to achieve a diversified investment strategy. Hybrid funds typically invest in a mix of stocks, bonds, money market instruments, and other asset classes to balance growth potential with income generation and risk mitigation. The asset allocation and investment strategy of hybrid funds vary based on the fund's objectives, risk profile, and investment mandate, allowing investors to choose funds aligned with their investment goals and risk tolerance. Hybrid funds offer investors the benefits of diversification, professional management, and simplified portfolio construction, making them suitable for conservative investors seeking a balanced approach to long-term wealth accumulation and capital preservation. Investors should carefully evaluate the asset allocation, investment strategy, fees, and historical performance of hybrid funds before investing to ensure alignment with their financial objectives and risk preferences.